Forex Flash: Short yen not yet a particularly crowded trade - NAB
Forex pairs in this Article » USD/JPY
FXstreet.com (Barcelona) - In USDJPY, short JPY contracts rose from 51.k to 79.5k up to last Tueday, the largest net speculative short since July 2007, NAB strategists say. According to the bank, it is worth noting that while the shorts are at a 5-year high, back in 2007, "net short positioning reached an extreme of 188k contracts - more than twice the current level and exemplifying our view that 'short yen' is not yet a particularly crowded trade." Since USDJPY has continues its extension higher since the IMM reporting date, "it is likely that the coming week's figures will reveal a further build up of speculative JPY shorts but which will still leave them well back from historical extremes" NAB adds.