https://www.cityindex.com/en-sg/news-and-analysis/yen-traders-flipped-to-net-long-exposure-cot-report-2024-08-19/|## Yen Traders Flip to Net-Long Exposure **Summary:** - Large speculators reversed their positions, flipping to net-long yen exposure for the first time since February 2021. - Asset managers are close to switching to net-long exposure, currently holding a net short of only -3k contracts. - A surge in long bets and a decline in shorts have contributed to this shift. **Technical Analysis:** - The net-long exposure for large speculators has reached 87k contracts, while their shorts have decreased by 70% in the past five weeks. - This bullish sentiment is supported by multiple factors, including the less hawkish stance of the Bank of Japan (BOJ) and expectations of multiple Fed rate cuts. **Cautious Approach:** - Asset managers are taking a more cautious approach, but they are also showing signs of reducing their net-short exposure. - The BOJ's dovish stance may limit future long bets, while a cap on new short bets is also possible due to the BOJ's less dovish stance. - A pullback in the yen's bullish outlook is not ruled out, but the combination of geopolitical uncertainties and Fed rate-cut bets has contributed to its strong performance.