Japan’s individual investors held about 3.61 trillion yen ($23.5 billion) in net short yen positions as of last week, according to data compiled by Bloomberg from the Japan Financial Futures Association and Tokyo Financial Exchange. The position increased from August levels after reaching 4.41 trillion yen in July, the highest since 2015. Retail traders have traditionally sold yen when it rises and bought it when it falls, but the yen’s sustained strength is increasing pressure to close those bearish positions. Mizuho Bank strategist Masayuki Nakajima said further yen gains could force some investors to unwind dollar-long positions by selling dollars and buying yen, potentially amplifying the currency’s advance. Options activity also points to stronger expectations for yen appreciation: the most actively traded dollar-yen option on Tuesday was a November-expiry put with a 142.86 strike, while dollar-yen puts expiring by year-end traded at more than three times the volume of calls. Markets are mainly positioning for dollar-yen to fall toward 150 to 152, with some 12-month options targeting 140. Wall Street remains divided, with some strategists citing limited room for further Bank of Japan rate increases and possible policy resistance near 150, while others see additional yen upside if the central bank signals further tightening and Japanese exporters accelerate the repatriation of overseas funds. Attention is now turning to the policy paths of the Federal Reserve and Bank of Japan, as retail dollar-long and yen-short positions could shift from restraining the yen to fueling gains through forced unwinding.