Japanese retail traders are reducing bearish US Dollar bets: Retail investors in Japan cut -$561 million of net short positions in the USDJPY currency pair between Friday and Tuesday, to -$2.27 billion net short, the smallest bearish US Dollar position in at least a year. This marks the largest 3-day reduction in bearish Dollar bets since October 2022. Over the last 2 weeks, net short positioning has declined -$723 million. Meanwhile, on Wednesday, the US Dollar recovered some losses after Treasury Secretary Scott Bessent said the US is not intervening in currency markets. Japanese markets remain as key driver of the USD.