Thursday, April 30, 2015

US Dollar Likely to Test Key Support versus Yen



US Dollar Likely to Test Key Support versus Yen


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USDJPY – The ratio of long to short positions in the USDJPY stands at 2.50 as 71% of traders are long. Yesterday the ratio was 2.42; 71% of open positions were long. Long positions are 2.4% lower than yesterday and 4.5% below levels seen last week. Short positions are 5.7% lower than yesterday and 25.4% below levels seen last week. Open interest is 3.3% lower than yesterday and 7.8% 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 USDJPY may continue lower. The trading crowd has grown further net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.



See next currency section:AUDUSD – Australian Dollar Fails to Rally Above Key Resistance



Written by David Rodriguez, Quantitative Strategist for DailyFX.com



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US Dollar Likely to Test Key Support versus Yen

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