Speculators Shift to Net Long Positions on Japanese Yen

Speculators shifted to a net long position on the Japanese yen for the first time since February 24, according to data from the United States Commodity Futures Trading Commission. For the week ending September 8, net non-commercial positions reached 10,796 long contracts, marking a sharp reversal from the 92,227 net shorts recorded the previous week.

This momentum follows a surge in the yen this month, fueled by expectations that the Bank of Japan will accelerate its rate hike schedule and that local investors will repatriate assets. On September 8, the dollar-yen rate hit 152.89, its strongest level since February 17.

The recovery follows a period of significant volatility. The currency reached a four-decade low of 163.99 per dollar in July, a trend partly attributed to the election of Prime Minister Sanae Takaichi, a fiscal dove. That decline prompted market interventions by the governments of Japan and the United States to support the yen.