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Retail Sentiment Analysis – EUR/USD, USD/JPY Latest
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Retail Sentiment Analysis – EUR/USD, USD/JPY Latest
Aug 1, 2024 12:54 AM

EUR/USD Retail Sentiment Analysis

Current Market Sentiment

48.19% of traders are net-long on EUR/USDThe ratio of short to long traders is 1.07 to 1Recent Changes:

Net-long traders: 5.58% decrease since yesterday, 5.71% increase from last weekNet-short traders: 7.39% decrease since yesterday, 20.11% decrease from last weekAnalysis:

The market is slightly bearish, with more traders shorting EUR/USD than going long.Typically, a contrarian approach suggests that when most traders are short, prices may rise. This could indicate potential upward movement for EUR/USD.However, recent shifts in trader positions show a decrease in both net-long and net-short positions compared to yesterday. This reduction in overall positioning might suggest decreased conviction in the market direction.The significant decrease in net-short positions over the past week (20.11%) compared to the increase in net-long positions (5.71%) indicates a shift towards a more bullish sentiment.Conclusion:

While the current majority short position typically suggests continued price increases for EUR/USD, the recent changes in trader sentiment point to a possible reversal. The market may be losing confidence in the current trend, potentially leading to a downward price movement soon.

Recommended by Nick Cawley How to Trade EUR/USD

USD/JPY Retail Sentiment Analysis

Current Market Sentiment

47.77% of traders are net-long on USD/JPYThe ratio of short to long traders is 1.09 to 1Recent Changes:

Net-long traders: 27.82% increase since yesterday, 13.41% increase from last weekNet-short traders: 8.99% decrease since yesterday, 13.32% decrease from last weekAnalysis:

The market remains slightly bearish, with more traders shorting USD/JPY than going long.The contrarian approach suggests that when most traders are short, prices may rise. This could indicate potential upward movement for USD/JPY.However, there's been a significant increase in net-long positions (27.82% since yesterday) and a decrease in net-short positions. This shift suggests growing bullish sentiment among traders.The week-over-week data shows a similar trend, with an increase in net-long positions and a decrease in net-short positions.Conclusion:

While many traders are still short on USD/JPY, which typically suggests continued price increases, the recent changes in trader sentiment are noteworthy. The substantial increase in long positions and decrease in short positions indicate a shift towards a more bullish outlook.

This change in sentiment suggests that the current upward trend in USD/JPY prices may be losing momentum. Despite the overall net-short position, the market appears to be moving towards a more balanced or even bullish stance. This shift could potentially lead to a reversal of the current trend, with USD/JPY prices moving lower in the near future.

Traders should be cautious and watch for additional signs of a potential trend reversal in USD/JPY

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

Change in Longs Shorts OI
Daily 19% -7% 4%
Weekly 21% -10% 3%
What does it mean for price action?

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