Hedge Funds to Option Traders Still Have Room to Bet Against Yen
- Japan’s currency is on the cusp of falling to a 24-year low
- ‘No effective ceiling’ on yen’s drop until BOJ caves: Saxo
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Speculators are gathering around the beleaguered yen and positioning is by no means extended, suggesting there’s still room for bears to pile in.
With Japan’s currency just a whisker away from breaking down to a 24-year low, position data from hedge funds to option traders are nowhere near historic levels. Citigroup’s ‘pain’ index for the yen -- a gauge of trader positioning -- is well off the lows of the year.