Clients have shifted to an underweight position in the Japanese Yen for the first time since Q4 2024, driven by the recent climb in USD/JPY and fears of potential intervention. According to FX Street, iFlow data highlight this change as hedge ratios remain low amid market uncertainty.
The upward movement in USD/JPY has led investors to reduce exposure to the Yen, reflecting concerns over prolonged weakness and possible central bank actions to stabilize the currency. This shift marks a notable change in positioning after a period of relative Yen strength.
For Japanese market participants, this development underscores the ongoing challenges in managing currency risk as global factors and domestic policies continue to influence the Yen’s trajectory.