Institutional Yen Shorts Hit $11 Billion Despite Record Intervention
Leveraged funds and asset managers have increased short positions on the Japanese yen to $11 billion, the highest since July 2024, even as Japan spends a record $74 billion to support the currency.
USDJPY
Short exposure has risen for three consecutive weeks, totaling an additional $5 billion. Japan's Ministry of Finance has spent approximately $74 billion over the past month in intervention efforts, yet the yen weakened from 155 to around 160 per dollar since early May, approaching the critical 160 threshold again.
The interest rate differential between Japan and the US remains the primary structural pressure, with institutional positioning signaling further yen weakness.
Source: The Kobeissi Letter