- JPMorgan estimates roughly $103 billion of yen short positions remain vulnerable to an unwind.
- A dollar-yen break below 155 would increase the risk of forced yen buying and faster appreciation.
Quotes
“Recent price action appears to corroborate our view that a relatively large JPY short position may still be outstanding”
“the risk cannot be ruled out that selling could beget further selling and drive a larger-than-expected yen appreciation.”