USD/JPY: Hedge funds building longs but sellers heavy at 80.00
One of the biggest prime brokers reported overnight that Yen shorts are at extreme levels. Obviously the speculators are hopeful that the BOJ will implement more heavy easing but corporates and real money funds don’t seem convinced, as they are selling rallies in size (3 billion reported yesterday above 80.00). Trailing stops now seen building below 79.50.
Yen crosses are probably also vulnerable.