Yen short bets rise to nine-year high, arbitrage trading shows signs of recovery.

There is a risk of intervention and the Bank of Japan may raise interest rates on Tuesday, but speculators have raised their bets on shorting the yen to the highest level in nine years, indicating that yen arbitrage trading is rebounding. According to data from the US Commodity Futures Trading Commission, as of the week ending June 9, leveraged funds increased their yen short positions to over 115,000 contracts, the highest level since November 2017. At the same time, the yen-dollar exchange rate is hovering around 160 yen, causing traders to remain vigilant about government intervention.