Hedge funds are increasingly selling euros against the Japanese yen as they bet on Japan's stable monetary policy in contrast to Europe's uncertain economic outlook. This shift reflects a broader trend in the currency markets, where hedge funds are positioning themselves based on anticipated interest rate changes. Analysts note that hedge funds remain short on European assets while favoring US assets, indicating a divergence in market sentiment regarding growth prospects in the US versus Europe. The strategy highlights the ongoing volatility and adjustments within global currency trading as investors respond to varying economic indicators.