Speculators take net long yen position for first time since February
Yen futures data shows a major reversal in sentiment as speculators switch from net shorts to net longs, marking the strongest trend seen since October.
Japanese currency futures data released on September 13 confirms that speculators took a net long position on the yen for the first time since February 24. Net non-commercial positions reached 10,796 long contracts in the week ending September 8, compared to 92,227 short contracts in the previous week. The yen rallied to 152.89 against the dollar on September 8, its strongest level since February 17. Analysts attribute this shift to market expectations for an accelerated interest rate hike cycle by the Bank of Japan and potential foreign investor repatriation following Tokyo's recent intervention. A long-term weakening trend had previously accelerated with the election of Prime Minister Sanae Takaichi in October, leading to a four-decade low of 163.99 per dollar in July before government support lifted prices.
