USD/JPY Ratio: -1.26
Signal: Bullish
USDJPY – The USDJPY Speculative Sentiment Index has held in negative territory for another week, pointing to a sustained advance from the underlying pair’s reversal in mid-March. However, like the pound, the USDJPY sentiment reading has maintained moderate readings since its flip. The ratio stood at -1.26 today, compared to -1.23 a week ago, with nearly 56% of retail traders holding short positions. The details offer a hint at greater activity. Though long positions were 8.7% greater than yesterday, the have plunged 46% since last week. In contrast, a mere 2.6% rise in shorts since Wednesday belies the 45.2% drop from last week. Open interest grew 5.2% from yesterday though it is only 1.3% above the monthly average. As a contrarian indicator, the SSI points to further gains for USDJPY though an extreme, net negative reading would certainly boost the efficacy of the signal.
