Bullish Sentiment Surges on Japanese Yen for First Time Since February

Speculators have made a sharp shift towards bullish sentiment on the yen for the first time since February, according to data from the Commodity Futures Trading Commission (CFTC). The net non-commercial positions in yen futures reached 10,796 long contracts in the week through September 8.

This marked a significant reversal from the previous week's net short position of 92,227 contracts and represents the first overall net long position since February 24. The shift comes as the yen has strengthened sharply this month, supported by expectations that the Bank of Japan could accelerate its rate-hike schedule.

The yen's rally was also driven by speculation that Japanese investors may repatriate assets held overseas. It reached a strong level of 152.89 against the U.S. dollar on September 8, its strongest since February 17.