Japanese Retail Traders Boost Net Dollar Shorts to Record $17.2B
Japanese retail investors increased net short positions against the US dollar to $17.2 billion, a record high since 2008, quadrupling month-over-month amid expectations of continued yen-supportive intervention by authorities.
Japanese retail traders have raised their net short bets against the US dollar to a record $17.2 billion, the highest level since data collection began in 2008. The figure more than quadrupled from the previous month, reflecting growing conviction that Japanese authorities will keep intervening to support the yen.
The surge follows Japan's Ministry of Finance spending roughly $73.6 billion on yen-support operations between April 28 and May 27. Despite this, the yen has still fallen over 4% from its May peak. Retail investors appear to believe the dollar's rally is near its end, betting on further yen strength through continued intervention.
Source: The Kobeissi Letter