Japanese Yen Forecast Unclear Against US Dollar

[B]USDJPY –[/B] Forex trading crowds remain long the US Dollar against the Japanese Yen, but relatively choppy price action has left our sentiment-based trading signals effectively flat the pair. The ratio of long to short positions in the USDJPY stands at 1.41 as nearly 59% of traders are long. Yesterday, the ratio was at 1.64 as 62% of open positions were long. In detail, long positions are 4.0% lower than yesterday and 7.1% stronger since last week. Short positions are 11.6% higher than yesterday and 34.8% weaker since last week. Open interest is 1.9% stronger than yesterday and 87.5% above its monthly average. The SSI is a contrarian indicator and signals more USDJPY losses, but we would preferably wait for further sentiment extremes before taking a stronger position on the currency pair.