Yen Longs Surge as CAD Shorts Retreat

The latest CFTC report highlights significant shifts in market positioning among major currencies and precious metals. Yen longs have surged, reaching a sizeable net long of around 120.4K contracts, marking the largest weekly increase since early August.

This surge has led to strong gains in USD/JPY during the period, despite the increased speculative flow. However, a renewed fall in USD/JPY would confirm this positioning, while a convincing move above 156.00 could weaken it.

The Canadian Dollar (CAD) has also seen a significant improvement in net longs, with shorts narrowing to 37.6K contracts, the second consecutive weekly decrease. Meanwhile, price and positioning are still at odds for JPY, CAD, and the Swiss Franc (CHF), indicating a mismatch between market flow and asset prices.