60.1% OF TRADERS ARE NET-LONG
USDJPY: Retail dealer information exhibits 60.1% of merchants are net-long with the ratio of merchants lengthy to brief at 1.51 to 1. In reality, merchants have remained net-long since Dec 18 when USDJPY traded close to 113.405; worth has moved four.three% decrease since then. The variety of merchants net-long is 2.6% greater than yesterday and eight.2% decrease from final week, whereas the variety of merchants net-short is 27.1% greater than yesterday and 10.1% greater from final week.
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USDJPY SENTIMENT SUGGESTS POTENTIAL PRICE TREND REVERSAL
We sometimes take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests USDJPY costs might proceed to fall. But merchants are much less net-long than yesterday and in contrast with final week. Current adjustments in sentiment warn that the present USDJPY worth development might quickly reverse greater regardless of the very fact merchants stay net-long.
— Written by Nancy Pakbaz, CFA, DailyFX Analysis