UBS strategists noted that speculative JPY shorts have been "completely flushed out," which precisely creates room for the market to rebuild bearish positions. Previously, USD/JPY quickly rose above 158 after the Japanese holiday, just a step away from the 160 mark. Meanwhile, Japan's 10-year government bond yield jumped 10 basis points to 3.075% on Thursday, reaching a new high since 1996. CFTC data showed that as of the week ending September 15, hedge funds turned net long on JPY for the first time in seven months, holding approximately JPY 251 billion (about $1.6 billion) in JPY bullish positions, but UBS believes this is not a bullish signal but rather the result of short covering.