USDJPY: Sentiment Suggests Bullish Trading Bias
41.8% OF TRADERS ARE NET-LONG
USDJPY: Retail trader data shows 41.8% of traders are net-long with the ratio of traders short to long at 1.39 to 1. The percentage of traders net-long is now its lowest since Dec 10 when USDJPY traded near 113.193. The number of traders net-long is 1.3% lower than yesterday and 41.9% lower from last week, while the number of traders net-short is 34.6% higher than yesterday and 14.3% lower from last week.
For more in-depth analysis, check out the Q1 2019 Forecast for USDJPY
USDJPY PRICES MAY CONTINUE TO RISE
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDJPY prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USDJPY-bullish 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.