Net-Long is 46% Higher than Yesterday Despite the Price Decrease
USDJPY: Retail trader data shows 55.9% of traders are net-long with the ratio of traders long to short at 1.27 to 1. The percentage of traders net-long is now its highest since Oct 16 when USDJPY traded near 112.308. The number of traders net-long is 46.2% higher than yesterday and 34.7% higher from last week, while the number of traders net-short is 31.4% lower than yesterday and 23.0% lower from last week.
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USDJPY Sentiment Gives a Strong Bearish Bias
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 Fan Xu, DailyFX Research
