Speculators shifted to a net long position in the Japanese yen for the first time since February, according to Commodity Futures Trading Commission data released late Friday. The positioning change marked a sharp reversal, with traders moving from bets on further yen weakness to expectations of additional gains.
Net non-commercial positions in yen futures reached 10,796 long contracts in the week through September 8. That was a sharp reversal from net short positions of 92,227 contracts a week earlier. The shift represented the first overall net long position since February 24 and involved a swing of more than 100,000 contracts in a single week.
The yen reached 152.89 against the U.S. dollar on September 8, its strongest level since February 17. The currency had previously hit a four-decade low of 163.99 per dollar in July.
Expectations that the Bank of Japan could accelerate its rate-hike schedule and speculation that Japanese investors may repatriate assets held overseas supported the yen's sharp strengthening. Tokyo and Washington also intervened in currency markets to support the yen.
The yen's decline had accelerated after Sanae Takaichi became prime minister last October as a fiscal dove, amid concerns that the Bank of Japan was falling behind other central banks in tightening monetary policy.
