USD/JPY: Weekly Long Positions Soar 59% Prompting a Bearish Bias
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Weekly Short Positions Drop 10%
USDJPY: Retail trader data shows 57.9% of traders are net-long with the ratio of traders long to short at 1.38 to 1. The percentage of traders net-long is now its highest since Aug 24 when USDJPY traded near 111.248. The number of traders net-long is 8.2% higher than yesterday and 59.8% higher from last week, while the number of traders net-short is 2.7% lower than yesterday and 10.3% lower from last week.
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USD/JPY Trading Sentiment Suggests Further Downside
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.