Via a Bloomberg article headlined: Top Fund Managers Pile Into Japan Banks on BOJ Tightening Bets.
(Bloomberg is gated) refers to comments from Bank of Japan Governor Ueda reported over the weekend, summary here ICYMI:
A couple of snippets from the Bloomberg piece on the significance of Ueda's remarks (bolding mine):
- A top-ranked fund that keeps a fifth of assets in shares of Japanese lenders is ready to increase that position on the possibility the central bank is preparing to end its ultra-easy monetary policy.
- "We have room to increase our stake if needed,” said Uda, who founded the firm in 2002. Wage hikes are going to be sustainable as Japan’s economic growth remains strong, he said.
- Ueda’s comments suggest an adjustment could come earlier than expected, said Atsuko Tsuchiya, the chief executive officer of Atom Capital Management Co. in Tokyo. Atom ... forecast that a tweak may happen next year
I suspect there will be an overhang of USD/JPY sellers given the monumental positioning in the yen carry trade. Shorting yen appears to be on borrowed time.