Hedge Funds Turn Bearish on Yen Before Upper House Vote

Hedge funds in the currency derivatives markets are bearish on Japan’s yen for the first time in nearly four months ahead of upper house elections Sunday.

Speculative traders now hold the equivalent of roughly $1.1 billion in short futures and options wagers against the yen — totaling some 12,606 contracts — according to the latest Commodity Futures Trading Commission data released on Friday for the week that ended on July 15. That’s the first bearish reading since late March.