USD/JPY 44.6% of traders are net-long indicating a mixed trading bias
Retail Traders Remain Net-Short Despite the Price Increase
USDJPY: Retail trader data shows 44.6% of traders are net-long with the ratio of traders short to long at 1.24 to 1. In fact, traders have remained net-short since Nov 02 when USDJPY traded near 112.322; price has moved 0.3% higher since then. The number of traders net-long is 8.7% lower than yesterday and 2.8% higher from last week, while the number of traders net-short is 4.4% higher than yesterday and 16.0% lower from last week.
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USDJPY Is Still Unable to Provide a Clear Sentiment
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 more net-short than yesterday but less net-short from last week. The combination of current sentiment and recent changes gives us a further mixed USDJPY trading bias.
--- Written by Nancy Pakbaz, CFA, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.