Hedge funds have turned bullish on the yen, and even strong US non-farm payroll data failed to reverse the trend.

According to ME News, on February 12 (UTC+8), hedge funds are showing a clear shift, increasing bets on a stronger yen amid a rising "buy Japan" sentiment. Traders said that even though strong US jobs data weakened market expectations for a Fed rate cut this year, bullish sentiment on the yen is still rising. On Wednesday, the yen rose against the dollar for the third consecutive trading day, remaining strong despite pressure on the dollar following the release of the US non-farm payroll report. According to data from the Depository Trust and Clearing Corporation (DTCC), on Wednesday, trading volume of USD/JPY put options with a notional size of $100 million or more was about 50% higher than that of call options of the same size. The premium for options betting on or hedging a decline in USD/JPY over the next month has risen to its highest level since February 2. (Source: ME)