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Speculative Yen Longs Plummet, Mean-Reversion Bounce Looms for USD/JPY

Guavy AI Editorial Team Published September 26, 2026

Instruments

USD JPY

The recent shift in market sentiment has led to a significant decline in speculative yen long positions.

According to CFTC data, non-commercial net JPY positions fell by ¥48.4k from ¥120.4k, indicating a reduced stance on the yen.

This drop of 40% suggests that the aggressive unwinding of the yen carry trade has paused, easing upward pressure on the currency.

With the USD/JPY's implied volatility remaining elevated, traders can benefit from selling JPY call options to collect premium.

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