The Japanese Yen has been the worst performing major currency in the past 4 months. Looks like that its downtrend is clear.
Speculators has been quick to jump on sudden Yen downtrend. CFTC COT report hows that large speculators are now their most net short JPY ( means long USDJPY ) since 2007 when the USDJPY traded near 115.
Options data shows that traders are at their most relatively bullish USDJPY since 2004, their now exists a premium for aggressive bets on/hedges against USDJPY strength for only the second time on record.
With such a clear swing in sentiment, looks like chance of long term trends on USDJPY are clear and it should continue higher.
In short term a pull back looks eminent.
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