60% of Retail Traders are Net-Short
USDJPY: Retail trader data shows 40.5% of traders are net-long with the ratio of traders short to long at 1.47 to 1. In fact, traders have remained net-short since Nov 02 when USDJPY traded near 112.854; price has moved 0.4% higher since then. The number of traders net-long is 2.9% lower than yesterday and 11.8% lower from last week, while the number of traders net-short is 12.9% lower than yesterday and 3.9% lower from last week.
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USDJPY Sentiment is Unable to Provide a Clear Direction
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDJPY prices may continue to rise. Positioning is less net-short than yesterday but more net-short from last week. The combination of current sentiment and recent changes gives us a further mixed USDJPY trading bias.
--- Written by Fan Xu, DailyFX Research