Yen Shorts Slashed as MOF Intervention Shakes Markets
The latest Commitment of Traders (COT) data shows a significant shift in the market's sentiment following the Ministry of Finance (MOF) intervention in the Japanese yen. According to COT, over 100k gross shorts were closed among both asset managers and large speculators in the week to Tuesday's close.
The reduction of 38.4k contracts from asset managers was the fastest weekly change on record, with asset managers covering their short positions at a pace not seen in 10 years. Meanwhile, gross longs rose by 46k contracts among large speculators, marking the fastest pace on record for this group.
However, asset managers failed to join the bullish party, leaving their net long position unchanged. The MOF has pledged to intervene again in the yen market with the support of the US Treasury, which could further impact market sentiment.