The Bank of Japan is suspected of intervening in the market, causing hedge funds to withdraw from the short camp on a large scale, which is rare in over a decade

The Bank of Japan is suspected of intervening in the market, causing hedge funds to withdraw from the short-selling camp on a large scale for the first time in over a decade. In the week ending on July 16th, the net short yen contracts of leveraged funds decreased by 38,025 contracts, marking the largest reduction since March 2011. The Japanese government and the central bank may have intervened in the market by buying yen and selling dollars to support the value of the yen. This intervention has had a significant effect, leading hedge funds to reduce their bearish bets on the yen. The recent rise in the yen also reflects market expectations of a rate cut by the Federal Reserve in September. The policy decision to be announced at the end of the month may serve as a reason to resume shorting the yen