Traders Flip Yen Shorts as Currency Continues Downward Trend

Leveraged traders have shifted their stance on the yen, reversing a net long position they had accumulated in the previous two weeks. According to data compiled by Bloomberg and released by the CFTC, these traders are now short the yen by approximately ¥210 billion ($1.3 billion) as of September 29, 2026.

The yen has continued to weaken against the dollar for the third consecutive week, despite Japanese officials commenting on the strain a soft yen can create. The Bank of Japan's decision to nudge interest rates higher last month was seen as too cautious by many traders, leaving the yen vulnerable to further declines.