The report indicates to me that we have seen investors reduce their negative exposure in the Yen quite aggressively at a key area. The wider swings is also a sign of reversal in the making. The lower high this week was another sign of exhaustion BUT fridays daily candle did put me off so I am still a bit careful. Looking at the 4 hour chart the 164.40-50 level is most likely the confirmation that is needed to go full in GBPJPY .
So, yes I read a bigger move could be in the works or are already in motion. But to where? Thats above my paygrade and interest. Reading the will give us clues about what investors want. So i will wait for clues on when they are done buying back the Yen. On the last two similar moves in net positions price reversed up. This time the decreasing net positions are at the highs so a shift is most likely in the making and we could drop sub 150.00 but I would expect a minimum test of 155.7X. The latest shift in Yen from positive to negative net positions was march 2021 at 151. XX level. Investors are still net negative and this by it self also tells us that there are more investors short in the yen than there is investors that is long. But the added yen longs and decreased yen shorts at the GBPJPY top indicates that we will see more adjustments to positive in the yen and GBPJPY will drop further coming weeks unless GBP suddenly gets some strength and starts rising harder than the YEN. But for now the GBP net negative positions does not move at the same rate as the YEN even though they also decrease their net negative positions.
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