A Directional Break Leads USDJPY SSI To Extreme

USD/JPY Ratio: -1.80
Signal: Bullish

USDJPY – Positioning has grown more extreme for USDJPY over the past week and for good reason. Early this week, the pair crossed above a year-old falling trendline that was hovering around 106 at the time. And, though the dollar has reversed course against its yen counterpart since the mid-March swing low, this represented another milestone for a developing bull advance. As would be expected with the building strength behind the pair, the retail group has upped its effort to find the prevailing trend. The USDJPY Sentiment ratio stood at -1.93 with nearly 66% of the client pool in short trades. This week’s reading happens to be the most extreme in nearly a year and follows a general trend of growing intensity with a -1.80 figure last week and -1.61 the period before that. In detail, long trades have fallen 8.5% since yesterday and are 7.2% weaker than last week. Trying to fade the pair’s strength, short positions grew 8.7% from Wednesday and are 11.3% above last week’s level. Clear direction hasn’t attracted additional attention from the market as open interest has edged 0.6% lower on the week and is overall 3.2% above the monthly average.