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EUR/USD and USD/JPY – Latest Sentiment Analysis
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EUR/USD and USD/JPY – Latest Sentiment Analysis
Aug 16, 2024 1:00 AM

EUR/USD and USD/JPY – Latest Sentiment Analysis

Recommended by Nick Cawley How to Trade EUR/USD

EUR/USD Sentiment Analysis

Current positioning:

32.46% of traders are net-longThe ratio of short to long traders is 2.08 to 1Changes in positioning:

Net-long traders: Up 9.28% from yesterday, down 17.58% from last weekNet-short traders: Down 10.10% from yesterday, up 15.36% from last weekInterpretation:

The analysis takes a contrarian view to crowd sentimentThe net-short position suggests EUR/USD prices may continue to riseOverall outlook:

Positioning is less net-short than yesterday but more net-short than last weekThis combination results in a mixed EUR/USD trading biasThe analysis suggests that while there's been some recent shift towards long positions, the overall sentiment remains predominantly short. This contrarian approach implies that the EUR/USD might continue to strengthen, despite the majority of traders betting against it. However, the mixed signals from different timeframes (daily vs weekly changes) lead to an overall mixed trading bias.

USD/JPY Sentiment Analysis

Current positioning:

42.64% of traders are net-longThe ratio of short to long traders is 1.35 to 1Changes in positioning:

Net-long traders: Down 14.49% from yesterday, down 11.96% from last weekNet-short traders: Up 10.17% from yesterday, up 10.94% from last weekInterpretation:

The analysis takes a contrarian view to crowd sentimentThe net-short position suggests USD/JPY prices may continue to riseOverall outlook:

Traders are further net-short compared to both yesterday and last weekThis data shows a significant shift towards short positions in USD/JPY over both daily and weekly timeframes. The percentage of net-long traders has decreased, while net-short traders have increased. Using the contrarian approach, this growing bearish sentiment among retail traders is interpreted as a bullish signal for USD/JPY. The analysis suggests that despite more traders betting against the currency pair, its price may actually continue to rise.

The consistent movement towards short positions across both timeframes (daily and weekly) provides a clearer signal compared to the previous EUR/USD data, which showed mixed trends.

USD/JPY Bullish Data provided by of clients are net long. of clients are net short.

Change in Longs Shorts OI
Daily -11% 7% -1%
Weekly -8% 12% 2%
What does it mean for price action?

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