Speculative positioning in the Japanese yen has turned net long for the first time in seven months. According to data released by the U.S. Commodity Futures Trading Commission (CFTC) on September 12 (local time), non-commercial net positions in yen futures stood at 10,796 contracts net long as of September 8. This marked an abrupt reversal from 92,227 contracts net short the prior week—the first net long reading since February 24.
The shift in positioning reflects a confluence of expectations that the Bank of Japan (BOJ) will accelerate its pace of rate hikes and the possibility that Japanese investors will repatriate overseas assets. The dollar-yen rate fell to ¥152.89 on September 8, its strongest level since February 17.
Leveraged funds also made notable moves. CFTC data shows that during the week through September 8, leveraged traders cut their yen bearish bets by nearly half….
