Retail trader data shows 48.3% of traders are net-long with the ratio of traders short to long at 1.07 to 1. In fact, traders have remained net-short since Feb 27 when USDJPY traded near 110.552; price has moved 0.6% higher since then. The number of traders net-long is 0.8% higher than yesterday and 25.5% higher from last week, while the number of traders net-short is 0.1% lower than yesterday and 18.7% lower from last week.
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.
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.