I always believed that the exaggerated moves in the Yen were staged/orchestrated, first to the downside and then to the upside. These moves caught the eyes of many a banker/analyst, including some friends in India who work with the big banks in Mumbai.

The commercial traders of Japanese yen futures have been continuously net short to varying degrees for several years, even as the value of the yen has fallen. That might seem to go against the whole principle of these traders supposedly being the smart money, but the story is deeper than that. Most of the commercial traders of Japanese yen futures are big banks who are using the futures markets to hedge their deposit and lending risks, using sophisticated pairings of multiple investment instruments. So it is not so much a case of them making a pure directional bet.

My understanding: the big banks are no one else but the ones with the inside know-how of when the Fed will do what. In other words, my guess is now the big banks are short the USD.

Full article

http://www.321gold.com/editorials/mcclellan/mcclellan082324.html

Please educate this newbie.

GL