Yen Advances to Level That Threatens 2022’s Big FX Short
- Dollar-yen drops to below key 50-day moving average support
- Shorting the yen has been a popular macro trade this year
Dollar-yen has now dropped more than 4% from its mid-July high to trade below the 50-day moving average -- around 134.28 -- a key support level.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
The resurgent yen has hit a level that has traders wondering if a technical rebound may turn into a rally that derails the FX world’s favorite short.
The Japanese currency climbed more than 1% Friday, rising for a third day in the wake of the Federal Reserve meeting, as reduced expectations for rate hikes caused hedge funds to cover short bets from one of the biggest global macro trades of the year.