During the last month, there has been a dramatic shift in the sentiment toward the Japanese yen. Back on April 19, the large speculators held a net short position of 52,983 contracts.

Of course, this net short position was built up in the months following the earthquake and tsunami that hit Japan.

Now that things have settled down and Japan seeks to get back to a normal life, large speculators are flocking to the yen.

Last week’s Commitment of Traders report shows that the net short position has shifted to a net long position of 13,054 contracts.

It isn't unusual to see such dramatic shifts in the forex markets, but to see two dramatic shifts in a little over three months is somewhat rare.

It is also interesting that even after the shift from bullish to bearish and back to bullish, the yen is still near its high for the last five years.

If the large speculators continue to add to their bullish position, the yen could move to a new high.