USD/JPY: Sentiment Prompts a Bearish Bias as Support is Tested
This Week Net-Long Positions Decreased 9%
USDJPY: Retail trader data shows 56.6% of traders are net-long with the ratio of traders long to short at 1.3 to 1. In fact, traders have remained net-long since Jul 23 when USDJPY traded near 111.332; price has moved 0.2% lower since then. The number of traders net-long is 1.6% higher than yesterday and 9.0% lower from last week, while the number of traders net-short is 5.3% higher than yesterday and 7.9% higher from last week.
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USD/JPY Sentiment Suggest Prices May Continue to Fall
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USDJPY prices may continue to fall. Recent changes in sentiment warn that the current USDJPY price trend may continue lower.
--- Written by Jake Schoenleb, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.