The British Pound has been a top performer in August while the Japanese Yen has struggled – even as global equity markets have come under pressure. The latest readings from the Speculative Sentiment Index (SSI) show retail traders have been increasing their short exposure to GBP/JPY.
The lengthening brown bars in the graph above show that SSI has continued to become more negative as GBP/JPY has risen. Since SSI is a contrarian indicator, this is a sign that the recent bull run may continue.
If a long position in GBP/JPY is entered at current levels, the stop loss could be set below the pivot level at 152.50 (red dotted line) as indicated by the Technical Analyzer, and the profit target could be set around the high set back in May at 156.776 (green dotted line).
https://media.dailyfx.com/illustrati...0000_i1028.png
The lengthening brown bars in the graph above show that SSI has continued to become more negative as GBP/JPY has risen. Since SSI is a contrarian indicator, this is a sign that the recent bull run may continue.
http://img853.imageshack.us/img853/8567/686d.png
If a long position in GBP/JPY is entered at current levels, the stop loss could be set below the pivot level at 152.50 (red dotted line) as indicated by the Technical Analyzer, and the profit target could be set around the high set back in May at 156.776 (green dotted line).