What is CADJPY sentiment?
CADJPY sentiment shows the percentage of retail forex traders currently long (buying) versus short (selling) CAD/JPY. Readings above 70 % or below 30 % mean positioning is heavily one-sided, which tells you where the crowd is concentrated — and, by extension, where stops are likely to be clustered.
How to use this data
Contrarian traders trade against extreme readings, on the theory that the crowd is wrong at extremes. We tested that theory against our own data and could not reproduce it (results here), so treat 90 % long CADJPY as information about positioning rather than a signal. Sentiment is context for technical analysis, not a substitute for it.
About CAD/JPY
CADJPY is a forex currency pair.