Someone in the Japanese government has to be excited about this chart — According to Morgan Stanley, currency traders are now net-shorting the Japanese yen, as shown by the shaded blue area breaking below the mid-line in the chart below.
This comes a period of heavy net-buying, and the yen has actually stabilised lately and is weakening today. (Note: In the USD/JPY chart below, a decline indicates a stronger yen against the dollar and vice versa)
(Via Morgan Stanley, MS FX Flows, Calvin Tse, 18 October 2010)
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