Yen Speculators Turn Net Long for First Time Since February

Speculators have turned bullish on the yen for the first time since February, signaling growing momentum behind Japan's currency as markets increasingly anticipate faster interest-rate hikes by the Bank of Japan. According to data from the U.S. Commodity Futures Trading Commission, net non-commercial positions in yen futures stood at 10,796 long contracts in the week ended September 8, compared with net short positions of 92,227 contracts a week earlier.

This shift in positioning comes as the yen has strengthened sharply this month, driven by expectations that the BOJ could accelerate its monetary policy tightening cycle. Investors are also watching for the possibility that Japanese investors could repatriate overseas assets, potentially providing additional support to the currency.

The dollar-yen exchange rate reached 152.89 on September 8, its strongest level for the yen since February 17. The change in speculative positioning marks a notable turnaround after years of pressure on the Japanese currency. Investors have increasingly reassessed the outlook for Japan's interest rates as inflationary pressures and expectations of further BOJ tightening have strengthened.