USDJPY: Price Trend May Soon Reverse
NUMBER OF NET-SHORT TRADERS ARE LOWER FROM LAST WEEK
USDJPY: Retail trader data shows 46.0% of traders are net-long with the ratio of traders short to long at 1.17 to 1. In fact, traders have remained net-short since Feb 27 when USDJPY traded near 110.861; price has moved 0.2% higher since then. The number of traders net-long is 2.6% lower than yesterday and 8.7% higher from last week, while the number of traders net-short is 28.1% lower than yesterday and 18.6% lower from last week.
USDJPY SENTIMENT SUGGESTS AN UNCLEAR DIRECTION
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.
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--- 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.