USD/JPY: Retail Trader Data shows that 71% of Traders are Net-Long
USD/JPY: Retail trader data shows 71.4% of traders are net-long with the ratio of traders long to short at 2.49 to 1. In fact, traders have remained net-long since May 03 when USD/JPY traded near 111.977; price has moved 6.1% lower since then. The number of traders net-long is 6.4% higher than yesterday and 21.0% higher from last week, while the number of traders net-short is 11.8% higher than yesterday and 23.5% higher from last week.
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USD/JPY: Changes in Sentiment Suggest Trend may Reverse Higher despite the fact that Traders remain Net-Long
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
