Here’s a chart of the dollar vs. the yen.
As you can see, the yen has been crushing the dollar this month.
Why is that notable?
As of Oct. 30, investors had increased their net short yen position to $5.8 billion, the largest short yen position since May 8. The previous week investors held a net $2.8 billion short yen position, according to the Commodity Futures Trading Commission.
This is what you call a pain trade.
Everyone’s short the yen because of the country’s growing trade deficits, and QE or whatever, so naturally just as everyone does that, the currency does the opposite.
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