The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.

We use cookies to improve your experience and serve personalized ads.

By clicking Accept, you consent to our use of advertising cookies. See our Privacy Policy for details.

ForexMedium•13 February 2026•

1 min read

Hedge Funds Pivot to Bullish Yen Bets Amid 'Buy Japan' Momentum

Hedge funds are actively rebuilding long positions in the Japanese yen, marking a significant reversal from their previous bearish stance. This shift is fueled by the growing 'buy Japan' narrative, supported by renewed interest in Japanese equities and post-election political clarity. Despite robust US jobs data, the USD/JPY pair has declined for three consecutive sessions, signaling a decoupling from traditional Federal Reserve rate expectations. Data from the DTCC reveals that trading volume for USD/JPY put options has surged to 50% higher than call options, highlighting a rush for downside protection. Institutional positioning suggests that the yen may find sustained support, potentially capping any rallies in the USD/JPY pair even if the dollar remains strong against other major currencies.