Retail Traders Increase Net-Shorts By 12.6% Today
USDJPY: Retail trader data shows 57.3% of traders are net-long with the ratio of traders long to short at 1.34 to 1. In fact, traders have remained net-long since Jul 23 when USDJPY traded near 111.374; price has moved 0.5% higher since then. The number of traders net-long is 6.8% lower than yesterday and 7.2% lower from last week, while the number of traders net-short is 12.6% higher than yesterday and 8.2% lower from last week.
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USD/JPY Shifting Sentiment Provide Mixed Bias
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USDJPY prices may continue to fall. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed USDJPY trading bias.
--- Written by Yayati Tanwar, DailyFX Research
