Yen Bears Getting Burned in November Amid Rate-Market Turmoil
- Japanese currency leads gains among G-10 peers this month
- Leveraged-fund positioning is most bearish since January 2019
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Traders betting the yen would extend its slump are feeling a little burned this month as global rates whipsaw and the Japanese currency rebounds.
Shorting the yen has become a popular trade in foreign-exchange markets amid bets the Bank of Japan will lag its peers -- particularly the Federal Reserve -- in tightening policy. Leveraged-fund positioning in the yen is the most bearish since January 2019, according to data from the Commodity Futures Trading Commission, and the Japanese currency has declined about 8.5% so far in 2021.