Danske notes risks bias in the positioning of the dollar / yen.

Recent data on the positioning of the foreign exchange markets show that the further easing of monetary policy in Japan was not enough to ensure that speculative investors are covered with long positions in the yen, say currency analysts of Danske. A week before the Aug. 31 net long positions on the yen slightly decreased from 51,069 to 49,904 contracts. However, taking into account the forthcoming elections, the bank's strategy indicate a likelihood of further monetary steps to prevent the strengthening yen, which is likely to provoke a rising movement of the dollar / yen and euro / yen.

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