Japanese retail investors increased net yen short positions to about ¥3.61
trillion (~$23.5bn) last week, up from August, data from the Japan Financial
Futures Association and the Tokyo Financial Exchange show; July short bets
peaked at ¥4.41 trillion, the highest since 2015. Retails have tended to sell on
yen strength and buy on weakness, even as overseas investors unwind yen carry
trades and hedge funds bet on further gains—some expect USD/JPY to fall
below 150 by year-end. Mizuho Bank senior strategist Masayuki Nakajima warned
that sustained yen appreciation could force retail traders to close USD-long
positions, with stop-loss selling potentially amplifying the yen rally.