The secondary trend of USDJPY is sideways on charts. In its 4 hourly chart, the pair is not sustaining at higher levels and consolidating with strong negative bias to give break out at downside. Its 30 and 200 DMA are also supporting the upcoming bearish trend in the pair. I
t is having an important support at the level of 118.60. If it breaks its support level and sustains below it then we can expect it to show further bearish movement in the pair.
STRATEGY: USDJPY is looking bearish on charts for next few trading session. One can go for sell on higher level strategy for this pair for intra day to mid term positions.
The latest readings from the Speculative Sentiment Index (SSI) support your bearish outlook on USD/JPY.
Weekly Summary of Forex Trader Sentiment and Changes in Positioning
The ratio of long to short positions in USD/JPY stands at 2.79 as 74% of traders are long. Yesterday the ratio was 2.63; 72% of open positions were long. Long positions are 3.2% higher than yesterday and 10.5% above levels seen last week. Short positions are 2.9% lower than yesterday and 9.7% below levels seen last week.
The ratio of long to short positions in USD/JPY stands at 2.79 as 74% of traders are long. Yesterday the ratio was 2.63; 72% of open positions were long. Long positions are 3.2% higher than yesterday and 10.5% above levels seen last week. Short positions are 2.9% lower than yesterday and 9.7% below levels seen last week.
SSI is a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that USD/JPY may continue lower. The trading crowd has grown further net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.
