The IMM commitment of traders report shows net JPY short non-commercial positions vs the USD increased to 40,104 contracts as of November 6, up from 37,020 contracts a week earlier. "The increase was due to the continued effects of the second straight month of easing action by the BOJ (on Oct. 30)," says Makoto Noji, FX strategist at SMBC Nikko Securities. "If those JPY short positions were to be unwound, the pair would fall to 78." Noji adds there are expectations in the market that the BOJ will take further steps in December, which will likely help maintain JPY short positions for the time being. The pair is 79.46. The market shows little reaction to Japan's 3Q GDP data, which shows that the economy contracted an annualized 3.5% in real-terms.
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