Japanese retail investors hold $23.5 billion yen short positions, facing pressure to close positions

As of last week, individual Japanese investors held a net short position in yen of approximately 3.61 trillion yen, equivalent to $23.5 billion, an increase from August. In July, the scale reached 4.41 trillion yen, the highest since 2015. With the strengthening of the Japanese yen, Japanese retail investors are facing pressure to close their long US dollar and short Japanese yen positions. Masayuki Nakajima, a strategist at Mizuho Bank, said that if the yen appreciates, retail investors may be forced to sell US dollars and buy Japanese yen, thereby amplifying the rise of the yen. (Source: Bloomberg)