USD/JPY: Weekly Net-long Positions Soar 37.5% Inducing a Bearish Bias
Retail Traders Increase Long Positions 13.9% Overnight
USDJPY: Retail trader data shows 55.2% of traders are net-long with the ratio of traders long to short at 1.23 to 1. The number of traders net-long is 13.9% higher than yesterday and 37.5% higher from last week, while the number of traders net-short is 10.4% higher than yesterday and 23.5% lower from last week.
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USD/JPY Sentiment Provides A Strong Bearish Bias
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USDJPY prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USDJPY-bearish contrarian trading bias.
--- Written by Jake Schoenleb, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.