As Dollar Weakness Presists, Yen May Rally
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As Dollar Weakness Presists, Yen May Rally

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As Dollar Weakness Presists, Yen May Rally

USDJPY: Retail trader data shows 69.2% of traders are net-long with the ratio of traders long to short at 2.25 to 1. In fact, traders have remained net-long since Dec 29 when USDJPY traded near 113.303; price has moved 2.5% lower since then. The number of traders net-long is 4.5% higher than yesterday and 0.6% higher from last week, while the number of traders net-short is 6.3% lower than yesterday and 15.1% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USDJPY prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USDJPY-bearish contrarian trading bias .

--- Written by Dylan Jusino, DailyFX Research

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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.

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