USDJPY: Traders Net-Short Increased by 61% from Last Week
TRADERS ARE MORE NET-SHORT
USDJPY: Retail trader data shows 38.8% of traders are net-long with the ratio of traders short to long at 1.58 to 1. The number of traders net-long is 1.8% lower than yesterday and 20.1% lower from last week, while the number of traders net-short is 9.4% higher than yesterday and 61.0% higher from last week.
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USDJPY: SENTIMENT SUGGESTS A BULLISH 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. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USDJPY-bullish 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.