NET-SHORT POSITIONS INCREASED BY 31% FROM LAST WEEK
USDJPY: Retail trader data shows 33.7% of traders are net-long with the ratio of traders short to long at 1.97 to 1. In fact, traders have remained net-short since Mar 31 when USDJPY traded near 110.83; price has moved 1.1% higher since then. The number of traders net-long is 0.6% higher than yesterday and 11.1% lower from last week, while the number of traders net-short is 3.3% lower than yesterday and 31.0% 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-short suggests USDJPY prices may continue to rise. Positioning is less net-short than yesterday but more net-short from last week. The combination of current sentiment and recent changes gives us a further mixed USDJPY trading bias.
--- Written by Nancy Pakbaz, CFA, DailyFX Research
Follow Nancy on Twitter @NancyPakbazFX