BNY: Clients Turn Underweight JPY for First Time Since Q4 2024 on Intervention Uncertainty
BNY reports that clients have become underweight the Japanese yen for the first time since Q4 2024, driven by USD/JPY’s advance and lingering intervention fears that are reshaping carry trade dynamics.
According to BNY’s Geoff Yu, iFlow data reveal that clients have shifted to an underweight position on the Japanese yen (JPY) for the first time since the fourth quarter of 2024. This shift comes as USD/JPY continues its upward climb, with intervention uncertainty prompting changes in carry trade strategies. The data suggests that hedge ratios have been adjusted amid the ongoing volatility and policy ambiguity from Japanese authorities.
The underweight stance reflects a broader market recalibration as traders weigh the risks of potential FX intervention against the yen’s persistent weakness. BNY’s analysis indicates that client positioning has turned more cautious, favoring currencies with clearer policy outlooks.
Source: FXStreet Forex News