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CURRENCY ANALYSIS

Speculative Yen Longs Remain Near Record Levels

Speculative, JPY, Yen, Longs Remain, Near, Record Levels, Currency Analysis, fx trader, forex

28 Mar 2016

The most extreme speculative positioning, judging from the futures market is the long yen position.  The bulls added another 3.4k contracts, lifting the gross long position to 82.8k contracts.  The record was set in 2008 at 94.7k contracts.  

The gross short position was trimmed by 4.5k contracts, leaving 29.5k.  It is the smallest gross short position since before Abe was elected in Prime Minister in 2012.  The net long yen speculative position rose to 53.3k contracts.  The record was also set in 2008 at 65.9k contracts.  

There were three significant speculative position adjustments in the CFTC reporting week ending March 22.  The largest was the unwinding of the previous week's record jump in gross long sterling positions.  After adding 33.5k contracts, speculators liquidated 24.4k contracts, leaving 38.5k. 

Speculators continued to reduce the gross short euro position as they have done throughout the first quarter.  The gross short position peaked near 262k contracts in early-December.  With the 10.5k decline in the latest reporting period, the gross long position stands at 157.4k contracts.  

Speculators reduced Canadian dollar exposure.  The bulls took profits, and the bottom pickers were punished.  The gross short position fell 11.6k contracts to 36.8k.  The gross long position fell by a third or 9.8k contracts to 21.8k.  

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