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17 Apr 2013
Forex Flash: Margin traders return to being contrarian - Nomura
FXstreet.com (Barcelona) - Nomura strategist Yujiro Goto notes that Japanese margin traders have maintained relatively high JPY selling positions, while JPY has been depreciating against the major currencies.
He adds that according to net positions at major OTC brokers released by Nikkei, ney USDJPY longs declined to JPY236 bln as of April 10th, from JPY444 bln the previous week. He comments that after the BoJ´s easing announcement on April 4th, USDJPY rallied further, encouraging margin traders to lock in profits as they are usually contrarians. He writes, “Although they are likely to have locked in profits, we estimate their net USDJPY longs rose again this week, based on a daily data released by one of the major brokers.”
He adds that according to net positions at major OTC brokers released by Nikkei, ney USDJPY longs declined to JPY236 bln as of April 10th, from JPY444 bln the previous week. He comments that after the BoJ´s easing announcement on April 4th, USDJPY rallied further, encouraging margin traders to lock in profits as they are usually contrarians. He writes, “Although they are likely to have locked in profits, we estimate their net USDJPY longs rose again this week, based on a daily data released by one of the major brokers.”