[B]USD/JPY Ratio: 1.46[/B]
[B]Signal: Bearish[/B]
[B]Currency Last Week %Long %Change in Positions Outstanding[/B]
[B]USD/JPY 1.71 59% 3.80%[/B]
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USDJPY - The ratio of long to short positions in the USDJPY stands at 1.50 as nearly 60% of traders are long. Yesterday, the ratio was at 1.56 as 61% of open positions were long—hardly a substantial change. Yet the weekly change shows that short positions have grown 2.5 percent and long positions decreased by 12.1 percent—suggesting that we could see further USDJPY short-term correction before a resumed downtrend. Given that the SSI is a contrarian indicator, however, the medium-term USDJPY direction may remain to the downside.
[B]Written by David Rodriguez, Currency Analyst for DailyFx.com [/B]