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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
JPY
- CFTC data accurate as of the July 16th close shows the JPY net short began to unwind in earnest after the first suspected intervention phase on July 11, but could still have further to run after the outright position hit it's largest net short since 2007 at the beginning of this month.
- The July 16th data shows that while both leveraged funds and asset managers trimmed the outright short by 31% and 27% respectively, both investor classes still held sizeable net shorts in the currency. It's a further unwind of this positioning that's likely playing a large part of the price action over the past week, with the break of several key technical levels in EUR/JPY, AUD/JPY and NZD/JPY triggering further waves of short covers.
- Given the magnitude and pace of the JPY move, it would be reasonable to expect a further trim of the net short JPY position in Friday's CFTC release (accurate as of yesterday's close) given the sensitivity of leveraged funds and asset managers to moves in spot - but markets are still a long way off neutral. In fact, both investor classes haven't been net neutral or net long JPY at the same time since the aftermath of COVID lockdowns in 2021. See chart below:
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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