Thursday, January 29, 2015

British Pound Outlook Turns Bearish versus Japanese Yen



British Pound Outlook Turns Bearish versus Japanese Yen


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GBPJPYThe ratio of long to short positions in the GBPJPY stands at 1.16 as 54% of traders are long. Yesterday the ratio was 1.15; 53% of open positions were long. Long positions are 7.3% lower than yesterday and 6.0% below levels seen last week. Short positions are 8.6% lower than yesterday and 21.4% below levels seen last week. Open interest is 7.9% lower than yesterday and 30.7% below its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the GBPJPY may continue lower. The trading crowd has grown further net-long from yesterday but unchanged since last week. The combination of current sentiment and recent changes gives a further bearish trading bias.



See next currency section:EURUSD – Euro Likely Turns Corner as Crowds Sell Aggressively



Written by David Rodriguez, Quantitative Strategist for DailyFX.com


British Pound Outlook Turns Bearish versus Japanese Yen



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British Pound Outlook Turns Bearish versus Japanese Yen

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