USD/JPY Rate Weakness Spurs Shift in Retail FX Interest

Japanese Yen Talking Points

USD/JPY may face a more bearish fate over the remainder of the month amid the failed attempt to test the 2018-high (114.55), and recent developments keep thedownside targets of the radar as the weakness in the exchange rate appears to be spurring a shift in retail interest.

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USD/JPY Rate Weakness Spurs Shift in Retail FX Interest

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USD/JPY may continue to chip away at the advance from the October-low (111.38) as it snaps the monthly opening range, but the retail crowd appears to be fading the weakness in the exchange rate as sentiment bounces back from an extreme reading.

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The IG Client Sentiment Report shows 43.8% of traders are net-long USD/JPY compared to 40.2% last week, with the ratio of traders short to long at 1.28 to 1. Keep in mind, traders have remained net-short since November 2 when USD/JPY traded near 113.20 even though price has moved 0.2% higher since then. The major U.S. holiday has a tendency to produce thin market conditions especially going into the

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