USD/JPY: Traders Continue to Remain Net-Long
USD/JPY: Net-Short Positions Decrease by 10.1% Since Last Week
USD/JPY: Retail trader data shows 68.6% of traders are net-long with the ratio of traders long to short at 2.19 to 1. In fact, traders have remained net-long since May 03 when USD/JPY traded near 111.913; price has moved 3.7% lower since then. The number of traders net-long is 6.1% lower than yesterday and 2.5% lower from last week, while the number of traders net-short is 15.5% lower than yesterday and 10.1% lower from last week.
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USD/JPY: Sentiment Suggests Prices May Continue to Fall
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.