🧮 Leveraged Funds Trimmed Extended Yen Short: Cable FX Macro

**As seen in IMM Positioning report 03/31/23, subscribe at cablefxm.co.uk/reports

• We had noted positioning in yen futures as extended net short, % of open interest dipped below its 5-year lower standard deviation to -30%. The most recent COT data showed leveraged money trimming the net short by 6.3 percentage points to -23%, this is the largest upside move recorded since November 2021

• Spot FX has seen the yen paring back some of the weakness shown at the beginning of the year, G10/FX traded heavy for most of last month. Our own measure of yen vs G10 currencies (Macro Walk EW Index) shows the yen rising for four straight weeks before posting losses during the last week of March

• If this is the beginning of a shift in futures positioning, the last read in % of OI hints to further room to the upside as the 5-year average stands at -11%