Speculators have pared bets the Swiss franc's value will drop just as the currency is falling and the lack of bets against it are likely to result in a deeper and sustainable decline.
Traders have slashed bets on a USD/CHF rally by over two-thirds to $1.7 billion.
USD/CHF jumped from 0.9544 on Sept.
21 to 0.9955 on Oct.
5 during this period of long liquidation.
In contrast, USD/JPY longs have doubled from $6 billion in mid-September to $12.5 billion today .
USD/JPY opened at 112.50 on Sept.
1 and reached 114.55 on Oct.
Both moves are being driven by the big rise in U.S. yields.
Both currencies are undermined by ultra-easy monetary policy.
Both currencies are perceived safe havens, though only the Swiss central bank has pledged to intervene to curb strength.
USD/CHF broke and closed bullishly above the daily ichimoku cloud and 100-DMA last week.
Without spec bets to slow it down, the rally could test major highs near 1.0350 that have held since 2010.