Hedge funds have flipped bullish on the Japanese Yen for the first time since 2021.

https://preview.redd.it/xw49qlyqttjd1.png?width=819&format=png&auto=webp&s=e736351644d028bed1fdb23002fe58cfca04cccc

According to CFTC data, leveraged funds now hold a net long position of 86 contracts on the Yen, valued at approximately $7 million.

This marks a sharp reversal from July, when positions were net short by about 115,000 contracts, the largest net short in years.

With the unwinding of the Japanese Yen carry trade, hedge funds are seizing the opportunity.

Consequently, the Yen has surged 10% against the US dollar in just a few weeks.

Is the carry trade still a significant market risk?

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