According to CoinMeta, Australia’s second-largest pension fund has established the largest overweight position in Japanese yen in many years, betting that the market has underestimated the likelihood of the Bank of Japan raising interest rates. Jimmy Louca, a senior portfolio manager at an Australian retirement trust that manages approximately A$370 billion (US$265 billion) in retirement savings, stated that over the past six months, the fund has continuously increased this position as the yen weakened against the US dollar to near 160. This is a rare bullish bet on the yen at a time when many investors are looking to sell it. Louca believes that the market’s sell-off of the yen was only partly correct—the drag caused by rising energy prices has been absorbed by the market, but the possibility of the Bank of Japan raising interest rates seems to have been underestimated. He thinks that the Bank of Japan may raise interest rates next month and signal two more hikes thereafter.