USD/JPY: A 23% Increase in Daily Long Positions Prompt A Bearish Bias

USD/JPY: A 23% Increase in Daily Long Positions Prompt A Bearish Bias

Only 38% of Retail Traders are Net-Long

USDJPY: Retail trader data shows 38.2% of traders are net-long with the ratio of traders short to long at 1.62 to 1. In fact, traders have remained net-short since Sep 13 when USDJPY traded near 111.133; price has moved 1.8% higher since then. The number of traders net-long is 23.3% higher than yesterday and 14.3% higher from last week, while the number of traders net-short is 3.7% lower than yesterday and 6.2% lower from last week.

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USD/JPY Trading Sentiment Suggests Further Downside

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDJPY prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current USDJPY price trend may soon reverse lower despite the fact traders remain net-short.

— Written by Jake Schoenleb, DailyFX Research

Article source: https://www.dailyfx.com/forex/technical/ssi/usd-jpy/2018/10/09/ssi_usd-jpy.html