Yen Bulls Emerge as Speculators Turn Net Long for First Time Since February

Speculative investors have turned bullish on the yen for the first time since February, as the currency's recent rally has sparked growing expectations of faster Bank of Japan rate hikes.

The Commodity Futures Trading Commission (CFTC) data revealed a sharp reversal in net non-commercial positions in yen futures, reaching 10,796 long contracts in the week through September 8. This marked a significant shift from the previous week's net short position of 92,227 contracts and represented the first overall net long position since February 24.

The yen's recent strength can be attributed to expectations that the Bank of Japan may accelerate its rate-hike schedule, as well as speculation about Japanese investors repatriating assets held overseas. This has led to the yen reaching its strongest level against the US dollar since February 17, with a price of 152.89.