TREE NEWS reports: Leveraged traders cut their bearish yen positions by half in the week to Sept. 8, CFTC data show, shortly before US Treasury Secretary Bessent told traders he held information on Bank of Japan and yen policy and was the ‘bookmaker,’ inviting them to take the other side. Speculative FX traders also trimmed bullish dollar bets for a sixth straight week, to $19.4 billion.
Hedge Funds Halved Yen Short Bets Before Bessent’s ‘Bookmaker’ Remark
Positioning data and official commentary are now moving in the same direction, which is the notable part: leveraged accounts had already halved their yen shorts before Bessent's remarks, and the six-week retreat in dollar longs suggests speculative conviction was thinning independent of any policy signal. That coincidence matters because it leaves crowded trades less crowded, so any future yen move may reflect genuine flow rather than a squeeze. Whether the dollar-long unwind extends into a seventh week is the open question.
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