Today USDJPY hit an all time low against the dollar trading at 75.71! Despite warnings from the BOJ that it would take "decisive action" to limit JPY strength, continued uncertainty out of Europe as a result of the debt crisis is leading to sustained JPY buying.

However as we can see from the retail positioning tool 85.80% of retail traders are LONG USDJPY! Furthermore they have been positioned this way for over a year now! As USDJPY has moved lower this positioning to the long side has continued to gather pace reaching a peak of 86.2% long at one point today.

We continue to maintain our bearish bias (strong short) on the USDJPY as we have done so throughout 2010-2011, however with rumors abound about a BOJ intervention (again) and imminent Euro zone 'decision' of some sort to stem the debt crisis it is likely to be a very interesting week.