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Retail Traders Become Less Bullish USDJPY Despite Rebound from Lows

Retail_Traders_Become_Less_Bullish_USDJPY_Despite_Rebound_from_Lows_body_Picture_1.png, Retail Traders Become Less Bullish USDJPY Despite Rebound from Lows

USDJPYThe ratio of long to short positions in the USDJPY stands at 3.02 as 75% of traders are long. Yesterday the ratio was 2.53; 72% of open positions were long. Long positions are 2.7% higher than yesterday and 6.4% below levels seen last week. Short positions are 14.1% lower than yesterday and 8.8% above levels seen last week. Open interest is 2.1% lower than yesterday and 5.1% above its monthly average.

We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the USDJPY may continue lower. The trading crowd has grown further net-long from yesterday but moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.

— Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

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