USDJPY - The ratio of long to short positions in the USDJPY stands at 2.22 as 69% of traders are long. Yesterday the ratio was 1.32; 57% of open positions were long. Long positions are 23.9% higher than yesterday and 31.5% above levels seen last week. Short positions are 26.2% lower than yesterday and 31.2% below levels seen last week. Open interest is 2.3% higher than yesterday and 1.2% above 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.
GBPUSD - The ratio of long to short positions in the GBPUSD stands at -3.56 as 22% of traders are long. Yesterday the ratio was -2.12; 32% of open positions were long. Long positions are 24.6% lower than yesterday and 17.4% below levels seen last week. Short positions are 26.3% higher than yesterday and 23.6% above levels seen last week. Open interest is 10.0% higher than yesterday and 13.1% above its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the GBPUSD may continue higher. The trading crowd has grown further net-short from yesterday and last week. The combination of current sentiment and recent changes gives a further bullish trading bias.
