Retail Traders Pile on Yen Shorts Despite Currency's Rally

Japan's retail traders have been adding to their bearish bets against the yen, despite its recent rally to its strongest levels in months. According to data compiled by Bloomberg from the Financial Futures Association of Japan and Tokyo Financial Exchange Inc., individual investors held an estimated ¥3.61 trillion ($23.5 billion) of net short-yen positions last week, up from August.

This surge in bearish wagers on the yen comes despite its recent climb to new highs. In July, bearish bets reached ¥4.41 trillion, the most since 2015. This trend suggests that retail traders are still optimistic about the yen's decline.