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2026-09-18 19:10:12
[Speculative Funds Shift to Long Yen; Yen Weakens Again After Dovish BOJ Stance] ⑴ As of the week ending September 8, net long positions in the yen jumped to approximately 10,796 contracts, a significant reversal from the previous week's negative 92,227 contracts. ⑵ This means a weekly swing of over 103,000 contracts, the first time a net long position has appeared since February 24. ⑶ At that time, investors were betting on the Bank of Japan accelerating its interest rate hikes and anticipated that the return of Japanese assets would provide further support for the yen. ⑷ However, the USD/JPY has since risen by more than 3% to approximately 157.8, recovering nearly half of the losses since the end of July. ⑸ The yen weakened further after the Bank of Japan's interest rate decision on Friday. The central bank voted 7-2 to raise rates, indicating a less hawkish message and a bearish signal for the yen. ⑹ In contrast, the Federal Reserve unanimously voted 12-0 to raise interest rates by 25 basis points to 4.0% on Wednesday and projected one more rate hike in 2026. ⑺ The yen is expected to face renewed pressure.
