Recent content by particibias

I have the same questions regarding the mechanism of yen vs stocks and metals. Is the carry trade in Japanese shares? If so, should yen decline as Japanese shares go up? Background: Nikkei just went up over 2% yesterday.

The last time JPY/USD was at this level, it quickly bounced back to 94 in less than 1 month due to it being a crowded trade. Although I don't readily foresee a pull back of this magnitude, it is probably worth considering how crowded is the trade for a potential short covering (recent e.g. US...