Japanese yen is heading mostly lower today as short positions surge. Right now, expectations are that the yen will tumble in value, and Forex traders are shorting the currency as a result.
For now the yen is moving much lower against the euro and the pound. The yen is actually higher against the US dollar right now, but other than that, the currency is struggling. A number of Forex traders think that the yen is going to see a huge drop, and this is ahead of what many think will be a massive yen sell-off.
The speculation that the yen will soon drop is coming from the expectation that the election this month in Japan will result in leaders who will devalue the yen. Aggressive easing is being pushed by presumptive Japanese leaders like Shinzo Abe, and the Bank of Japan is expected to make policy that will weaken the yen considerably.
As a result, it is little surprise that there are a large number of yen short positions out there, and it makes sense that the yen is much lower against high beta currencies like the euro and pound.
At 13:41 GMT USD/JPY is down to 82.2475 from the open at 82.3900. EUR/JPY is up to 109.3750 from the open at 106.9550. GBP/JPY is up to 132.2905 from the open at 131.9650.
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