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20 May 2014
Margin traders’ net JPY selling remains large - Nomura
FXStreet (Bali) - Margin traders’ net JPY selling remains large, notes Yujiro Goto, FX Strategist at Nomura.
Key Quotes
Net JPY selling positions held by Japanese margin traders rose to JPY2419bn ($23.6bn) as of end-April from JPY2982bn the previous month, according to the Financial Futures Association of Japan.
Their net JPY short positions were the biggest since May 2013. Margin traders are likely to have booked profits in March when JPY weakened into the end of the month, and re-accumulated their JPY short positions in April.
Net USDJPY long positions remain the largest positions in JPY crosses. Margin traders‟ net USDJPY long positions reached JPY1787bn ($17.4bn), the biggest net long positions since September last year. Net USDJPY long positions have been high for the past 12 months, compared with their level before the regime change in December 2012.
Retail investors‟ expectations for further JPY weakness remain high in May, according to Nomura‟s Individual Investor Survey. Of the respondents, 58.7% expect USDJPY to rise from the reference level (102.44 on 1 May) in three months, suggesting dip-buying demand from retail investors is likely to remain strong
Key Quotes
Net JPY selling positions held by Japanese margin traders rose to JPY2419bn ($23.6bn) as of end-April from JPY2982bn the previous month, according to the Financial Futures Association of Japan.
Their net JPY short positions were the biggest since May 2013. Margin traders are likely to have booked profits in March when JPY weakened into the end of the month, and re-accumulated their JPY short positions in April.
Net USDJPY long positions remain the largest positions in JPY crosses. Margin traders‟ net USDJPY long positions reached JPY1787bn ($17.4bn), the biggest net long positions since September last year. Net USDJPY long positions have been high for the past 12 months, compared with their level before the regime change in December 2012.
Retail investors‟ expectations for further JPY weakness remain high in May, according to Nomura‟s Individual Investor Survey. Of the respondents, 58.7% expect USDJPY to rise from the reference level (102.44 on 1 May) in three months, suggesting dip-buying demand from retail investors is likely to remain strong