USDJPY: Traders Remain Net-Long
53.9% OF TRADERS ARE NET-LONG
USDJPY: Retail trader data shows 53.9% of traders are net-long with the ratio of traders long to short at 1.17 to 1. The number of traders net-long is 1.8% higher than yesterday and 3.7% higher from last week, while the number of traders net-short is 15.2% lower than yesterday and 21.3% lower from last week.
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USDJPY: SENTIMENT 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.