Short Yen Positions Reach Highest Level in Two Years
Investors increased short yen bets to a two year high after the Bank of Japan held rates. Negative real rates continue to drive selling despite intervention risks.
Investors built the largest short Japan yen position in nearly two years, testing government resolve to defend the currency. This positioning is the heaviest since the 2024 intervention and follows the Bank of Japan's decision to hold rates at 0.75%. For investors, the trade signals a bet that sub-zero real rates will outweigh the risk of direct market interference.
### Why Carry Trades Trump Intervention Fears The yen hit record lows against the Swiss franc and its weakest level against the British pound since the global financial crisis. HSBC data shows retail traders hold their largest short positions against non-dollar crosses since February 2020.
