Yen Speculators Flip to Net Long Position for First Time Since February

Speculators have taken a net long position on the yen for the first time since February, according to data from the Commodity Futures Trading Commission. This is a reversal of their previous stance, which was a net short position of 92,227 contracts in the week prior.

The yen has seen significant gains this month due to expectations of accelerated rate hikes by the Bank of Japan and potential repatriation of assets by local investors. The dollar-yen rate reached its strongest level since February 17 at 152.89 on September 8.

A long-term weakening trend for the yen was observed after the election of fiscal dove Sanae Takaichi as prime minister last October, leading to concerns about the Bank of Japan being behind the curve in tightening monetary policy.