Three out of four traders short USD/JPY
Midway through the trading week, we update Client Sentiment levels - percentage of tastyfx clients with long or short positions - for major forex pairs like EUR/USD, USD/JPY, and more. Find out what traders are thinking this week.
Forex sentiment update
Now above 146.00, USD/JPY is trading through 2023 highs. 75% of traders expect the pair to fall back toward its long-term mean, yet the dollar has traded over 400 pips higher against the yen before.
Australian dollar is also at a year-to-date extreme against US dollar. AUD/USD has not been below 0.6500 since November 2022 and sentiment is 83% long.
How client sentiment works
Client Sentiment shows the percentage of tastyfx client accounts with open positions that are currently long or short. If the majority of client accounts with open positions are long a given market, then they expect the price to rise; if the majority is short, then they expect it to fall. (Values taken using tastyfx's Client Sentiment measure as of the previous day's close.)
Trend followers might go with sentiment, while contrarians would tend to go against the trend. For example, a 65% long measure in EUR/USD could reflect a buying opportunity for trend followers or a selling opportunity for contrarians.
EUR/USD sentiment - 57% long
Last week's sentiment: 53% long
Long sentiment grows in EUR/USD this week after sliding from 1.1000 last week to under 1.0900 today. While the pair spent several months this year under the current price, traders are anticipating a move back toward more recent July highs.
GBP/USD sentiment - 52% long
Last week's sentiment: 55% long
British pound sentiment remains slightly long while trading around 1.2740. GBP/USD dipped below 1.2700 at the start of the week before rallying back.
USD/JPY sentiment - 75% short
Last week's sentiment: 69% short
USD/JPY has gained over 200 pips from last Wednesday - trading near 146.00. Only a quarter of traders believe the pair can go higher toward historic extremes.
USD/CHF sentiment - 81% long
Last week's sentiment: 79% long
Swiss franc sentiment is back above 80% nearing 0.8800; prior to July, USD/CHF spent no time under 0.8830 in 2023.
AUD/USD sentiment - 83% long
Last week's sentiment: 80% long
Already through 2023 lows, AUD/USD long sentiment grows to over 80%. More than four out of five traders expect the pair to rise from its current price around 0.6440.
USD/CAD sentiment - 63% short
Last week's sentiment: 58% short
US dollar continues to rise against Canadian dollar, and short sentiment grows as well. USD/CAD is its highest since June 1st, yet still far from 2023 highs.
How to trade client sentiment
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on forex pairs
Trading forex requires an account with a forex provider like tastyfx. Many traders also watch major forex pairs like EUR/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like tastyfx’s YouTube channel. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
This information has been prepared by tastyfx, a trading name of tastyfx LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. tastyfx accepts no responsibility for any use that may be made of these comments and for any consequences that result. See our Summary Conflicts Policy, available on our website.
