Yen Reversal Leads Broad Positioning Reset in FX Markets

The yen's reversal has led to a broader positioning reset in the FX market. Japanese Yen (JPY) net positioning improved by around 103K contracts to a net long of 10.8K contracts, marking the biggest weekly increase since early August. This shift is consistent with the stronger positioning as USD/JPY collapsed to the mid-153.00s.

The Canadian Dollar (CAD) saw a sharp retreat in non-commercial net shorts, narrowing by around 37.6K contracts to 70.5K contracts. This improvement is the strongest weekly change since mid-December 2025, and USD/CAD fell modestly as a result.

Speculative buying met rising prices in WTI, with net longs increasing to 136.6K contracts. Additionally, positioning remains light at the 15th net percentile. Gold saw added speculative buying, with around 3.8K contracts added to its net longs, taking them to nearly 232K contracts alongside a decent price gain.

However, currencies such as the Euro (EUR) and British Pound (GBP) defied weaker flows. EUR net shorts widened to 42.6K contracts, while GBP net shorts jumped to around 58.8K contracts. Despite this, sustained price gains could pressure these shorts, but the positioning data alone does not confirm a bullish turn.