Traders Shorting Aggressively. Retail trader data shows 31.0% of traders are net-long with the ratio of traders short to long at 2.22 to 1. The number of traders net-long is 3.9% higher than yesterday and 28.1% lower from last week, while the number of traders net-short is 18.5% higher than yesterday and 47.9% higher from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests GBPJPY 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 GBPJPY-bullish contrarian trading bias.