Technical Analysis, Retail Trader Positioning, Japanese Yen, USD/JPY, AUD/JPY, GBP/JPY – Talking Points Retail dealers are increasingly anticipating an increase in the Japanese Yen. In USD/JPY, AUD/JPY, and GBP/JPY, downside exposure is growing. This is monitored by the IGCS, which can be a contrarian indicator at times. Retail traders appear to be increasingly banking on the Japanese Yen appreciating in the future, according to IG Client Sentiment (IGCS). In the USD/JPY, AUD/JPY, and GBP/JPY, downside exposure is increasing. IGCS might be a contrarian indication at times. That is to say, if the current positioning pattern continues, the Yen could be susceptible in the future. Check watch the recording of my IGCS webinar from last week to learn more. Bullish USD/JPY Sentiment Outlook According to the IGCS index, almost half of all retail traders are net long USD/JPY. On a daily and weekly basis, upside exposure has fallen by 6.36 percent and 2.77 percent, respectively. With that in mind, the present emotion combined with recent adjustments suggests a positive contrarian trading inclination. Analysis of the Technical The USD/JPY is resting on previous rising support from the start of the year. As the 50-day Simple Moving Average (SMA) has retained the dominating upside focus, the pair has struggled to establish downside follow-through. The previous trendline could act as new resistance, sending prices lower again. 109.53 appears to be the immediate support level. Daily USD/JPY Chart In Trading View, a chart was created. Bullish AUD/JPY Sentiment Outlook According to the IGCS index, around 40% of retail traders are net long the AUD/JPY. On a daily and weekly basis, downside exposure increased by 4.72 percent and 13.68 percent, respectively. The fact that traders are net-short suggests that prices could rise. The confluence of these factors, as well as recent swings in attitude, adds to a positive contrarian trading inclination. Analysis of the Technical AUD/JPY is consolidating slightly above the important 81.323-81.987 support zone, aiming to extend losses from the high in May. A bearish crossover between the 20- and 50-day SMAs suggests a near-term technical tendency to the downside. The 200-day SMA, on the other hand, is approaching, and it could reintroduce the main upward trend as critical support. Chart created in Trading View for the AUD/JPY pair on a daily basis. Bullish Sentiment for the GBP/JPY According to the IGCS index, around 36% of retail investors are net long GBP/JPY. On a daily and weekly basis, downside exposure grew by 3.56 percent and 6.08 percent, respectively. The fact that traders are net-short means that prices are likely to climb further. Furthermore, recent adjustments in sentiment provide a stronger optimistic contrarian trade inclination. Analysis of the Technical After a bearish crossover emerged between the 20-day and 50-day SMAs, the GBP/JPY could be vulnerable to extending May’s peak. Clearing the 150.67 – 151.32 support zone is required to maintain losses. The 148.53 – 149.38 range would then be shown. Rising support from 2020 could also enter the picture, reinforcing the bullish bias. GBP/JPY Daily Chart*IG Client Sentiment Charts and Positioning Data Used from July 13th Report—- Daniel Dubrovsky is a strategist for DailyFX.com. Use the comments area below to reach out to Daniel, or follow him on Twitter at @ddubrovskyFX./n
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