Franklin Templeton has significantly increased its holdings in foreign exchange (FX) options, focusing entirely on bets against the Japanese yen in favor of the US dollar. This move comes amid significant market interventions by Japanese authorities aimed at bolstering the yen, which has reached its weakest point in 57 years when adjusted for inflation. Preliminary data suggests that Japan's central bank sold over $35 billion of foreign-exchange reserves last week. Hedge funds have responded by drastically reducing their short bets against the yen, marking the most significant reduction in more than a decade. These interventions have led to three sudden surges in the yen, raising suspicions of continued central bank activity in the currency markets. The yen has moved from approximately 100 to 160 in a few years.