NUMBER OF TRADERS NET-LONG HAS INCREASED BY 12.1% FROM LAST WEEK
USDJPY: Retail trader data shows 72.4% of traders are net-long with the ratio of traders long to short at 2.63 to 1. In fact, traders have remained net-long since May 03 when USDJPY traded near 111.449; price has moved 3.2% lower since then. The number of trader’s net-long is 2.6% higher than yesterday and 12.1% higher from last week, while the number of trader’s net-short is 4.4% higher than yesterday and 17.8% lower from last week.
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USD/JPY SENTIMENT SUGGESTS A MIXED SIGNAL
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggesting USDJPY prices may continue to fall. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed USDJPY trading bias.
-Written by Warren Venketas, DailyFX Research