Traders Split On USDJPY As Pair Consolidates

[DailyFx]

USD/JPY Ratio: 1.00
Signal: Bearish


Currency Last Week Present* % Long % Change in Positions Outstanding Signal USDJPY -1.10 1.00 50% 4.89% Bearish


USDJPY – USDJPY has pulled back from two-month highs recently; but the prominent rising trend channel that has defined price action since the mid-March reversal continues to hold up the medium-term trend. It is likely this contrasting market direction and low volatility that has left retail traders evenly split on their USDJPY positions. The pair’s SSI ratio stood at 1.00 with 50% of traders long and 50% short. This effectively breaks a steady trend of net negative readings that stood at -1.10 last week and -1.26 the period before. However, while positioning stood at parity, the details from the report shows that there has actually been considerable activity behind the pair. Long positions jumped 16.8% from yesterday, which in turn lead to a 15.4% increase on the week. Shorts have been less active in a 3.3% decline since yesterday and 3.9% over the week. Net open interest has risen 2.0% on the week and stands 6.7% above the monthly average. With a reading at parity, the sentiment index does not hint at direction, but the recent trend in net negative readings should set a trend until a flip is confirmed.