Speculators heavily short on Yen

Earlier today, the Yen still found itself on the defensive. The Euro reached a new 5 month high against the Japanese currency and the Dollar was still nursing losses, however was steady, after rally pauses late last week.
The Dollar retreated from an 11 month high of 84.187 Yen hit on Thursday and earlier today stood at 83.42 Yen.
Much depends on the BOJ's monetary policy when determining whether the greenback may rise further against the Yen in the coming months. Should the BOJ continue to push with new monetary easing measures and not do enough to convince the domestic market in Japan, that it is serious about raising the inflation rate to about 1%, then the Dollar/Yen could probably continue to rise.
Overall, the Dollar remained little changed against a basket of currencies at 79.791, having succumbed to profit-taking last week.
The Euro had dipped 0.1 percent to $1.3167.
It's worth noting that, not since 1999 have currency traders been bullish on the Dollar for so long as they have been recently. This seems a clear indication, that the market sees the U.S. resuming its role as the engine of global economic growth.