Hedge funds betting on a Bank of Japan rate hike in June find little support, unable to stop the yen from further decline

They believe that even another rate hike would hardly reverse the structural depreciation pressure facing the yen. Given that the market has now almost fully priced in a 25 basis point rate hike this month, these "agile funds" seeking quick, short-term gains are increasingly turning their core focus to whether the Bank of Japan truly has the capability to launch a sustained tightening cycle. Five-Star Asset Management and Palinuro Capital both currently hold short yen positions; meanwhile, Simplex Asset Management plans to tactically establish phased short yen options if the yen rebounds and breaks above 159 yen per dollar.