Japanese retail investors remain skeptical the recent yen rally will persist and are holding sizeable yen-short positions, raising the risk of greater FX volatility, SMBC Nikko Securities strategist Rinto Maruyama said. He estimates retail JPY shorts were 2.886 tln JPY ($18.58bn) at end‑August, more than half of a 4.1 tln JPY global total. If the yen strengthens further, those positions would likely be closed, a move that could accelerate yen appreciation. Retail investors known as Mrs. Watanabe

Japanese retail investors remain skeptical the recent yen rally will persist and are holding sizeable yen-short positions, raising the risk of greater FX volatility, SMBC Nikko Securities strategist Rinto Maruyama said. He estimates retail JPY shorts were 2.886 tln JPY ($18.58bn) at end‑August, more than half of a 4.1 tln JPY global total. If the yen strengthens further, those positions would likely be closed, a move that could accelerate yen appreciation. Retail investors known as Mrs. Watanabe are key participants in carry trades.