AUTOREFRESH 
Speculative FX positioning: increase in USD/JPY shorts explains Friday’s bounce
By Sean Lee || March 8, 2010 at 01:24 GMT
|| 7 comments || Add comment
This latest report on FX market speculative positioning is for the week to March 2nd:
- Long USD positions were smashed by over 75%
- This was primarily achieved through a big increase in JPY longs ie USD/JPY selling
- AUD and CAD buying continues, though still in moderation
- The record EUR shorts from previous week were reduced by a little over 5%
It looks like the market decided to transfer a significant portion of it’s short EUR/USD positions into EUR/JPY positions through the selling of USD/JPY. These look to have been spooked by the ‘war-chest’ proposal from the Japanese government and therefore we had the big spike in USD/JPY and in the JPY crosses on Friday. Short term speccies forced to cover, as usual the biggest driver in the FX market.
Have a dry weekend all 
Sean, what do you think the week brings for the Euro?
Sean did you see this, http://uk.reuters.com/article/idUKSGE62602G20100307?pageNumber=2&virtualBrandChannel=11700
Hi banker, need to wait and see what ‘measures’ EU takes against CDS speculators but all looks a bit EUR bullish, or should I say that the shorts might get squeezed
Thanks TN, having a read through.
I’m planning to sell UJ , do you it is good at the moment or not Sean?
Hi Donald. Lots of stops above 9075 I hear but there were heavy offers at 9065/70. After that I don’t know I’m afraid
hmm don’t like stops so I will wait until those stops get fill in…thanks for the info Sean.