USDJPY: 56.4% of Traders Are Net-Long
NET-LONG POSITIONS INCREASED SINCE LAST WEEK
USDJPY: Retail trader data shows 56.4% of traders are net-long with the ratio of traders long to short at 1.3 to 1. In fact, traders have remained net-long since Dec 18 when USDJPY traded near 113.376; price has moved 4.5% lower since then. The number of traders net-long is 1.7% higher than yesterday and 2.4% higher from last week, while the number of traders net-short is 8.5% higher than yesterday and 19.5% higher from last week.
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USDJPY PRICE TREND MAY REVERSE
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USDJPY prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current USDJPY price trend may soon reverse higher despite the fact traders remain net-long.
--- Written by Nancy Pakbaz, CFA, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.