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Forex pairs in this Article » EUR/USD, USD/JPY
FXStreet (Barcelona) - Goncalo Moreira CMT, FXStreet Technical Analyst notes that Friday's COT report puts the positive non-commercial net position in a eight week high, the Commodity Futures Trading Commission data shows.

Key Quotes

“These bullish standings were in part boosted by a large decline in Euro net positions which suffered a large adverse shift in sentiment from 14.347 to a negative -13.610 net position.”

“This shift in sentiment likely misrepresents the current positioning as it does not capture the euro's mid-week bottoming and upward drift post NFP Friday. As for fundamentals from the European jurisdiction, the ECB changed policy, which many had expected. Another event which could have been the cause for additional weakness, and finally was not a mover at all, was the German Constitutional Court ruling, which raised more doubts about the legality of the Outright Market Transaction backstop.”

“As stated in the weekly forecast poll analysis the lack of faith in the Euro leaves it in a better position to continue the advance.”

“JPY short covering has continued for six consecutive weeks . Non-commercials are now negative 46.829 contracts compared to the 143.822 net short I late December. Their buy/sell ratio has been declining at a fast pace, the result from the convergence between the increasing yen-shorts and the decreasing of the yen-longs.”

“In the Australian dollar, the short covering triggered by the RBA’s shift to a neutral tone set the CoT Oscillator on a constructive path for non-commercials which reversed their net-short positioning to a less extreme negative 55.523 contracts.”
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