USDJPY: Price Trend May Soon Reverse
50.5% OF TRADERS ARE NET-LONG
USDJPY: Retail trader data shows 50.5% of traders are net-long with the ratio of traders long to short at 1.02 to 1. The number of traders net-long is 6.3% lower than yesterday and 5.0% lower from last week, while the number of traders net-short is 4.8% higher than yesterday and 9.7% higher from last week.
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USDJPY: SENTIMENT SUGGESTS A MIXED 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. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current USDJPY price trend may soon reverse higher despite the fact traders remain net-long.
--- 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.