Retail trader data shows 69% of traders are net-long
USD/JPY: Retail trader data shows 69.0% of traders are net-long with the ratio of traders long to short at 2.23 to 1. In fact, traders have remained net-long since May 03 when USD/JPY traded near 111.573; price has moved 3.6% lower since then. The number of traders net-long is 2.5% higher than yesterday and 1.9% lower from last week, while the number of traders net-short is 0.9% lower than yesterday and 14.4% higher from last week.
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USD/JPY: Sentiment remains bearish
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USD/JPY 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 USD/JPY-bearish contrarian trading bias.
-Written by Tammy Da Costa, DailyFX Research
