USDJPY: Traders Remaining Net-Long Suggests Price May Continue to Fall
NET-LONG POSITIONS ARE 16.8% HIGHER FROM LAST WEEK
USDJPY: Retail trader data shows 67.0% of traders are net-long with the ratio of traders long to short at 2.03 to 1. In fact, traders have remained net-long since May 03 when USDJPY traded near 111.083; price has moved 1.6% lower since then. The number of traders net-long is 7.6% higher than yesterday and 16.8% higher from last week, while the number of traders net-short is 4.0% higher than yesterday and 5.7% higher 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 Richard Snow, DailyFX Markets Writer
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.