NET-LONG TRADERS INCREASE FROM LAST WEEK
USDJPY: Retail trader data shows 48.7% of traders are net-long with the ratio of traders short to long at 1.05 to 1. In fact, traders have remained net-short since Feb 11 when USDJPY traded near 110.511; price has moved 0.2% higher since then. The number of traders net-long is 7.5% higher than yesterday and 55.9% higher from last week, while the number of traders net-short is 5.4% higher than yesterday and 42.2% higher from last week.
For more in-depth analysis, check out the Q1 2019 Forecast for USDJPY
USDJPY PRICES MAY SOON REVERSE
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDJPY prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current USDJPY price trend may soon reverse lower despite the fact traders remain net-short.
--- Written by Nancy Pakbaz, CFA, DailyFX Research
Follow Nancy on Twitter @NancyPakbazFX