Asia FX positioning has reached the heaviest level since Jan-2021, according to Deutsche Bank metrics. The rallies in Asian currencies over the past three months average 9% and that prompted them to lower the basket to 'hold' from 'add' last week.
They also note that following last week's central bank meetings, speculators added to euro longs while lowering exposure to GBP.
Their data adds to the argument for a reversal higher in USD/JPY as it is particularly crowded.
