JPMorgan Warns Yen Short Unwind Below 155 Could Fuel Rapid Appreciation

A significant short position in the yen remains outstanding, according to JPMorgan Chase & Co. strategists, who warn that a break below 155 per dollar could lead to further selling and accelerate the yen's gains.

The strategists, including Junya Tanase, pointed out that recent price action appears to support their view of a substantial short position in the yen.

If the dollar-yen exchange rate breaks below 155, 'the risk cannot be ruled out that selling could beget further selling and drive a larger-than-expected yen appreciation,' the strategists wrote.