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USDJPY - Retail FX traders remain extremely net-long the US Dollar versus the Japanese Yen, and a contrarian view of crowd sentiment points to further USD/JPY weakness. Indeed, our data shows there are nearly 3 open retail positions long USD/JPY for every 1 short-over 70 percent are long. .
Traders have remained net-long since the pair traded near ¥120 through late 2014. In that stretch the USD/JPY traded to decade highs near ¥126 but ultimately tumbled to recent lows below ¥108. Until we see a marked and sustained shift towards crowd selling, we see little reason to abandon our long-standing bearish trading bias for the USD/JPY.
See next currency section : XAUUSD - Gold Price Likely to hit Key Peaks
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
