USD/JPY: Bullish Bias As Short Positions Increase 17%
42% of Retail Traders are Net-Long
USDJPY: Retail trader data shows 42.0% of traders are net-long with the ratio of traders short to long at 1.38 to 1. The number of traders net-long is 2.0% higher than yesterday and 11.0% lower from last week, while the number of traders net-short is 17.0% higher than yesterday and 13.4% higher from last week.
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Net-Shorts Suggest Bullish Bias
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDJPY prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USDJPY-bullish 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.