Yen Speculators Go Long for First Time Since February Amid BOJ Rate Hike Bets
The yen has seen a significant surge in September due to expectations of an accelerated rate hike schedule by the Bank of Japan. This shift in momentum has led speculators to take on a net long position on the yen for the first time since February, with data showing 10,796 long contracts for the week ending September 8.
This change is a reversal from the previous week's net shorts of 92,227, and marks the first overall long reading since February 24. The yen has been gaining strength in September, reaching its strongest level against the US dollar since February 17 at 152.89 on September 8.
The currency had weakened over the past year following Japan's election of prime minister Sanae Takaichi in October 2025 and a sense that the BOJ was behind in tightening monetary policy. The yen hit a four-decade low of 163.99 per US dollar in July, but a market intervention by Tokyo and Washington helped bolster the currency.