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 yen gains—some expect USD/JPY to fall below 150 by year-end. Mizuho Bank sen

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 yen 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.