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Feb 29 - 06:55 AM

USD/JPY - COMMENT-Beware The FX Tides Of March; USD/JPY 146 Risk On BoJ

By Rob Howard  —  Feb 29 - 04:35 AM

Feb 29 (Reuters) - USD/JPY could sink towards 146 if the Bank of Japan ditches its negative interest rate policy on March 19, a move that might prompt hedge funds to aggressively prune short yen bets which have grown exponentially of late.

Hawks hoping the BoJ ends negative rates in March were heartened by Thursday's call for an overhaul of the central bank's ultra-loose monetary policy by BoJ policymaker Hajime Takata.

Takata put a spring in the step of the yen, with USD/JPY falling to a two-week EBS low of 149.61.
USD/JPY was last at 146 on Feb.
1 - a day before the dollar jumped on hot NFP data.

CFTC data on FX positioning due on Friday at 2030 GMT will show if the net JPY short rose again in the week ending Feb.
27, after more than doubling to 120,788 contracts in the six weeks to Feb.
20.

Related comments: nL2N3FB0KQnL2N3F70Y8nL2N3F40KC

Source:
Refinitiv IFR Research/Market Commentary

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