USD/JPY Ratio: -1.27
Signal: Bullish
| Currency | Last Week | Present* | % Long | % Change in Positions Outstanding | Signal |
| USDJPY | -1.81 | -1.27 | 44% | -3.84% | Bullish |
USDJPY – The ratio of long to short positions in the USDJPY stands at -1.27 as nearly 56% of traders are short. This stands in stark contrast to last week’s report, at which point long positions in the USDJPY outnumbered short positions by a much more lopsided 1.81 to 1. Long USDJPY positions have fallen 21.8 percent since the beginning of last week, while short orders have actually climbed by 17.8 percent. Yet the number of forex positions short the USDJPY have more recently fallen sharply—down 10.6 percent overnight. The Speculative Sentiment Index works as a contrarian indicator in trending markets, and the fact that traders have pulled back short trades suggests that we may see further short term drops in the USDJPY before it resumes its advance. Discuss your own forecasts for the USDJPY in our forex forum.
