USD/JPY at 119 as Shorts Dry Up on BOJ

Speculators are losing interest in betting that the yen will fall further as the Bank of Japan shows no sign of adding stimulus when it meets this week.

Net yen shorts, or bearish bets for the Japanese currency, decreased to 14,448 in the week to April 21, the least since October 2012, according to Commodity Futures Trading Commission data, before the BOJ on April 30 sets monetary policy and releases its outlook for prices and economic growth. Speculative positions are heading for a five-month run in favor of the yen in the longest such stretch since 1992.

“Speculative positions show waning appetite for shorting the yen,” Toshiya Yamauchi, a senior analyst in Tokyo at Ueda Harlow Ltd., a margin-trading-services provider, wrote in a note to clients. “The probability of further BOJ easing this week is low.”  The yen was little changed at 118.91 per dollar at 11:25 a.m. in Tokyo from April 24. It has gained 5.1 percent against major peers this year, the best performer after the Swiss franc of 10 developed-nation currencies tracked by Bloomberg Correlation-Weighed Indexes.