JPY Signal: 100% Bearish
JPY: Positioning on the Japanese Yen is understandably similar to that of the Swiss Franc, with recent 2-year lows in the USDJPY coinciding with relative extremes in speculative positioning. Traders are the most net-short the USDJPY since 2006, at which point the USDJPY posted a substantive reversal from 108.98 onto a virtually uninhibited rally to 116.57. Though we remind traders that positioning can remain extreme for weeks at a time, risks remain for a subsequent USDJPY correction.