USDJPY: Traders Remaining Net-Long Suggests Price May Continue to Fall
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NET-SHORT POSITIONS ARE 31.4% LOWER FROM LAST WEEK
USDJPY: Retail trader data shows 53.7% of traders are net-long with the ratio of traders long to short at 1.16 to 1. The number of traders net-long is 1.6% lower than yesterday and 11.0% higher from last week, while the number of traders net-short is 8.4% lower than yesterday and 31.4% lower from last week.
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USDJPY: SENTIMENT SUGGESTS 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.