66% of Retail Traders are Net-Short
USDJPY: Retail trader data shows 34.4% of traders are net-long with the ratio of traders short to long at 1.9 to 1. In fact, traders have remained net-short since Nov 02 when USDJPY traded near 113.183; price has moved 0.6% higher since then. The number of traders net-long is 8.2% lower than yesterday and 25.2% lower from last week, while the number of traders net-short is 10.6% higher than yesterday and 23.4% higher from last week.
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Further Net-Short Positions Suggest a Bullish Bias
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDJPY prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USDJPY-bullish contrarian trading bias.
— Written by Fan Xu, DailyFX Research