Leveraged Funds Bet Big on Weaker Yen

Leveraged funds have turned net long on the Japanese yen for the first time since July 2025, according to CFTC data. They now hold roughly ¥250 billion in bullish bets.

This shift came ahead of the Federal Reserve and Bank of Japan raising interest rates and after the yen briefly fell more than 1% to around 158 per U.S. dollar last Friday.

Asset managers have also increased their long positions, with a net long position of around 55,000 contracts, up from approximately 20,000 contracts a week earlier.

The recent buildup of net long positions may stem from expectations that the Bank of Japan will further tighten monetary policy or that the U.S., Japan yield spread will narrow.