COT Report: Yen Bulls Emerge as US Dollar Bears Retreat

The latest COT report has revealed significant shifts in market positioning, particularly for the Japanese yen and US dollar. Large speculators have finally flipped to net-long exposure to Japanese yen futures for the first time since February, while asset managers remain net-short.

This change in sentiment may bode well for USD/JPY, with the author assuming that the Japanese yen saw its low for the year back in July, marking a major top for the pair.

In contrast, futures traders have reduced their net-long exposure to the US dollar by 63% in just six weeks. Despite this decline, they remain long by $18.1 billion heading into last week's hot PPI and CPI reports.