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.
To gain more insight in how we use sentiment to supplement a strategy, join us for one of our weekly webinars on how to “Identify Trends with Sentiment”:
(click on one of the above times to enroll)
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