Hedge Funds Bet Big on Strengthening Yen After Intervention

Hedge funds have undergone a significant shift in their sentiment towards the Japanese yen. For the first time since July 2025, they are now bullish on the currency.

This change comes after US and Japanese authorities intervened in the market to support the yen just weeks ago. The intervention likely had a lasting impact, as it prompted leveraged traders to reassess their bets against the yen.

According to data from the Commodity Futures Trading Commission, these traders wiped out their short positions in the week ending September 15 and began building wagers on a stronger currency.

The funds now hold about ¥251 billion ($1.6 billion) tied to bets that the yen will strengthen.