Hedge funds turned bullish on the yen for the first time since July 2025. This shift in sentiment is worth watching after the US and Japanese authorities interfered in the foreign exchange market for several weeks to support the yen. Data released by the US Commodity Futures Trading Commission on Friday showed that for the week ending September 15, leveraged traders emptied short yen bets and began establishing bullish yen bets. According to Bloomberg's aggregated data, such funds hold about 251 billion yen bullish related positions in yen. This bullish shift occurred shortly before the Federal Reserve and Bank of Japan raised interest rates this week. Previously, some market participants had hoped that the Bank of Japan would release a more clear signal to continue raising interest rates, but Japanese policymakers failed to meet such expectations, so such bullish positions may have caught some traders off guard.

Hedge funds turned bullish on the yen for the first time since July 2025. This shift in sentiment is worth watching after the US and Japanese authorities interfered in the foreign exchange market for several weeks to support the yen. Data released by the US Commodity Futures Trading Commission on Friday showed that for the week ending September 15, leveraged traders emptied short yen bets and began establishing bullish yen bets. According to Bloomberg's aggregated data, such funds hold about 251 billion yen bullish related positions in yen. This bullish shift occurred shortly before the Federal Reserve and Bank of Japan raised interest rates this week. Previously, some market participants had hoped that the Bank of Japan would release a more clear signal to continue raising interest rates, but Japanese policymakers failed to meet such expectations, so such bullish positions may have caught some traders off guard.