USD/JPY
Markets

USD/JPY: Sentiment Prompts a Bearish Bias as Support is Tested

DailyFX.com -

This Week Net-Long Positions Decreased 9%

USDJPY: Retail trader data shows 56.6% of traders are net-long with the ratio of traders long to short at 1.3 to 1. In fact, traders have remained net-long since Jul 23 when USDJPY traded near 111.332; price has moved 0.2% lower since then. The number of traders net-long is 1.6% higher than yesterday and 9.0% lower from last week, while the number of traders net-short is 5.3% higher than yesterday and 7.9% higher from last week.

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USD/JPY Sentiment Suggest Prices May Continue to Fall

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USDJPY prices may continue to fall. Recent changes in sentiment warn that the current USDJPY price trend may continue lower.

--- Written by Jake Schoenleb, DailyFX Research

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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.

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