USDJPY Open Interest Plunges As Pair Maintains Congestion

[B]USD/JPY [/B][B]Ratio: -1.03
[/B][B]Signal: Bullish[/B]

                                   [B]Currency[/B]             [B]Last Week[/B]             [B]Present*[/B]             [B]% Long[/B]             [B]% Change in Positions   Outstanding[/B]             [B]Signal[/B]                               USDJPY             -1.18             [B]-1.03[/B]             49%             -21.71%             Bullish                


[B]USDJPY – [/B]Retail speculative positioning in USDJPY continues to hover close to parity. However, not only are traders split on the direction of the yen-based pair; but net positioning has also tumbled as speculators have grown weary of the long period of congestion. Today, the USDJPY’s SSI reading stood at -1.03 after a steep drop in shorts pulled the indicator back from last week’s -1.18 level. From the details, we can see that long positions have slipped 15.7% from Wednesday and are 16.6% weaker than last week. Activity was just as elevated on the short side as traders added 8.6% yen-long positions to their portfolios, though this was not a large enough jump to compensate for the 26.1% drop from last week’s level. With the USDJPY having been range bound for four weeks now, retail traders are moving to the sidelines to wait for a clear sign for direction. Open interest has dropped 23.9% from last week and is 10.7% below the monthly average.