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Yen short positions dropped sharply after intervention by Japanese authorities

Yen short positions dropped sharply after intervention by Japanese authorities

金十金十2026/05/11 01:51
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Golden Ten Data reported on May 11 that after Japanese authorities intervened to support the yen, bearish positions on the yen dropped significantly, highlighting how official actions have curbed this crowded trade. According to data from the U.S. Commodity Futures Trading Commission (CFTC), during the week ending May 5, leveraged funds reduced their net short positions on the yen. Currently, their net short position stands at 61,340 contracts, worth approximately $4.9 billion, the lowest in nearly a month. Meanwhile, asset management institutions also reduced 13,839 short positions, bringing their holdings down to 10,653 contracts. “Given the risk of intervention and the strong official warnings, chasing the yen lower near the 160 level has lost its appeal,” said Stefan Rittner, Senior Portfolio Manager at Allianz Global Investors, who takes a neutral view on the USD/JPY exchange rate. However, he pointed out, “Although the yen valuation has become quite low, persistent structural headwinds limit its potential for a sustained rebound”; furthermore, if the USD/JPY rate approaches previous highs again, further intervention risks are also expected to increase.
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