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Bullish bets on the yen continue to gain traction: COT report
It seems that large speculators were right to pile into long bets last week, given the revived hopes of a 25bp hike from the BOJ this month. The yen was the strongest major currency last week, as it finally saw a decent upswing in line with my bias outlined several weeks ago. And it aw large specs trim shorts and increase long exposure by 23.3% (14.9k contracts) last week. Asset managers also trimmed net-short exposure by -2.9k contracts, by closing -1.8k short contracts and adding 1k long contracts. Ultimately, I suspect an important swing low has been seen on the yen which could prompt a deeper pullback on USD/JPY ... (full story)