Japanese Yen

Leveraged funds began July last year modestly net long the yen, but quickly reversed as US dollar strength ensued. They’ve remained basically net short almost ever since, with bearish positioning reaching an extreme in early July. Last month, positioning understandibly briefly reversed, which coincided with BOJ intervention, before swinging back to a net short.

• Speculative bets on further yen weakness are again rebuilding implying the well-established bullish US-Yen trend is set to resume.

• We can see the US-Yen making new highs into Christmas, a combination of a strong Greenback and weak Yen.