LARGE SPECS SELL THE EURO AND JAPANESE YEN
Euro positioning isn’t at an absolute extreme given large specs are short only 7.1k contracts, however; the activity could be construed as fairly extreme since it was just earlier this year that they held long nearly 150k contracts. Taking the two dynamics into consideration, though, there isn’t a lot of information to be gleaned from the report at this time.
EURO POSITIONING CHART
In the past two weeks, the net-short held in the Japanese yen has nearly doubled with just over 50k contracts added. This short-term extreme came at a time when JPY was hitting support against USD (or, USD/JPY at resistance). Last week, we asked whether resistance in USD/JPY could be broken, as momentum hasn’t been very sustainable for the pair for quite some time. As it turns out, so far, those levels are holding in place as a ceiling in the mid-11400s and extreme positioning changes are proving exhaustive.