USDJPY: Traders Net-Long Increased from Last Week
TRADERS REMAIN NET-SHORT
USDJPY: Retail trader data shows 47.7% of traders are net-long with the ratio of traders short to long at 1.09 to 1. In fact, traders have remained net-short since Feb 27 when USDJPY traded near 110.552; price has moved 0.6% higher since then. The number of traders net-long is 0.8% higher than yesterday and 21.3% higher from last week, while the number of traders net-short is 0.5% higher than yesterday and 14.4% lower from last week.
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USDJPY: SENTIMENT SUGGESTS AN UNCLEAR TRADING BIAS
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.