USDJPY: Prices May Continue to Fall
51.6% OF TRADERS ARE NET-LONG
USDJPY: Retail trader data shows 51.6% of traders are net-long with the ratio of traders long to short at 1.07 to 1. The number of traders net-long is 1.6% lower than yesterday and 0.9% lower from last week, while the number of traders net-short is 2.1% lower than yesterday and 4.1% lower from last week.
For more in-depth analysis, check out the Q1 2019 Forecast for USDJPY
USDJPY SUGGESTS A BEARISH TRADING 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 Nancy Pakbaz, CFA, DailyFX Research
Follow Nancy on Twitter @NancyPakbazFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.