NET-LONG TRADERS INCREASE FROM LAST WEEK
USDJPY: Retail dealer knowledge reveals 48.7% of merchants are net-long with the ratio of merchants quick to lengthy at 1.05 to 1. The truth is, merchants have remained net-short since Feb 11 when USDJPY traded close to 110.511; value has moved zero.2% increased since then. The variety of merchants net-long is 7.5% increased than yesterday and 55.9% increased from final week, whereas the variety of merchants net-short is 5.four% increased than yesterday and 42.2% increased from final week.
For extra in-depth evaluation, take a look at the Q1 2019 Forecast for USDJPY
USDJPY PRICES MAY SOON REVERSE
We sometimes take a contrarian view to crowd sentiment, and the very fact merchants are net-short suggests USDJPY costs might proceed to rise. But merchants are much less net-short than yesterday and in contrast with final week. Current adjustments in sentiment warn that the present USDJPY value development might quickly reverse decrease regardless of the very fact merchants stay net-short.
— Written by Nancy Pakbaz, CFA, DailyFX Analysis
Comply with Nancy on Twitter @NancyPakbazFX