Signal: JPY Bearish, USDJPY Bullish
JPY: Both short-term and long-term COT indices have reached extremes and turned lower, which supports calls for further Japanese Yen weakness through the short-term. Indeed, we may see the USDJPY trade higher through the coming weeks of trade, as positioning has grown increasingly one-sided when viewed through CFTC futures data. Of course, positioning may remain extreme for weeks at a time, but such data suggests that we are closer to a multi-week USDJPY bottom than a top.