USD/JPY: Positioning Not A Constraint For Further Upside N-Term

Deutsche Bank discusses USD/JPY outlook from the positioning front and notes that the latest data on JPY positioning suggests that it is not a constraint for USD/JPY upside yet. 

"Domestic speculators have been reducing USD longs in this latest USD/JPY rally, as they traditionally do.

This flow may have helped dampen the move higher in USD/JPY as of late, but with net onshore margin positioning near the lows, the bullk of this contrarian flows has likely run its course," DB adds.