USD/JPY: Downtrend Is Expected to Continue as Traders Remain Net-Long Since May 2019
USD/JPY: Net-Short Positions Increase by 25.3%Since Last Week
USD/JPY: Retail trader data shows 62.7% of traders are net-long with the ratio of traders long to short at 1.68 to 1. In fact, traders have remained net-long since May 03 when USD/JPY traded near 112.096; price has moved 2.9% lower since then. The number of traders net-long is 0.3% lower than yesterday and 4.3% lower from last week, while the number of traders net-short is 15.3% higher than yesterday and 25.3% higher from last week.
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USD/JPY: Sentiment Suggests Price Trend May Reverse Shortly
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USD/JPY prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current USD/JPY price trend may soon reverse higher despite the fact traders remain net-long.
-Written by Tammy Da Costa, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.