Short positions in the yen have rocketed to a five-year high, thanks to investor worries about the potential for new stimulus moves in conjunction with the coming Japanese elections. Some even think the yen could fall to 85 or more against the dollar.
Should you pile on?
Hardly, says Keagan York, Head of FX Strategy of Compass Global Markets,
York says the investors who think the yen is headed to 85 are overly bearish. "We've still got a problem with where the global funds are going to park their money that's a safe environment, and the yen unfortunately is going to benefit from it."