Japanese housewives getting roasted...
- Thread starter ASusilovic
- Start date
..............lol...............amazing. now this shit rocks, volatility was extremely low past few months. Time to be riding the waves in forex now.
keep an eye out for BOJ intervention. 115.00 they will try to bring it back to this level.
FWIW - I have prior intervention at 110 level - but that is years ago - nikkei maybe 12K level then.
more recent level.. has been documented to be at 115.00
watch for continued pressure on the carry as us market open nears.
GBP/JPY was total madness today ! :eek: 
Mrs Watanabeâs orderly exit
One point of hope in recent weeks, notes Gillian Tett in Fridayâs insight column, is the unwinding of the yen carry trade: marked, orderly and thoroughly polite, really.
Not so long ago there was a fear that the carry trade - the process by which investors borrow yen to invest in higher yielding foreign currencies - might get dangerously out of kilter.
But as Tett points out, the good news is that the carry trade seems to be losing a bit of steam. Whereas there was Y120 to the dollar a few weeks ago, there are now only around Y107. In and out of Japan, investors are losing confidence in the yen carry trade.
After a summer - and autumn - of pain, Japansese domestic investors are curbing their short-yen positions. The stereotypical Japanese retail investor, Mrs Watanabe, has had her fingers burnt. Fewer of those frenzied intra-school run trading sessions, then.
Outside of Japan, the latest IMM data suggests that global investors have 30,000 net long contracts on the yen versus the dollar - a massive swing of 218,000 from the extreme short positions seen earlier this year.
Says Tett:
But what is striking about this unwinding of the carry trade is that it has been relatively smooth, and thus not created a market - or media - panic. Perhaps that is because the yen-dollar swing has not been matched by a similar yen rise against the euro. Or maybe the memory of 1998 has simply left investors better prepared.
One point of hope in recent weeks, notes Gillian Tett in Fridayâs insight column, is the unwinding of the yen carry trade: marked, orderly and thoroughly polite, really.
Not so long ago there was a fear that the carry trade - the process by which investors borrow yen to invest in higher yielding foreign currencies - might get dangerously out of kilter.
But as Tett points out, the good news is that the carry trade seems to be losing a bit of steam. Whereas there was Y120 to the dollar a few weeks ago, there are now only around Y107. In and out of Japan, investors are losing confidence in the yen carry trade.
After a summer - and autumn - of pain, Japansese domestic investors are curbing their short-yen positions. The stereotypical Japanese retail investor, Mrs Watanabe, has had her fingers burnt. Fewer of those frenzied intra-school run trading sessions, then.
Outside of Japan, the latest IMM data suggests that global investors have 30,000 net long contracts on the yen versus the dollar - a massive swing of 218,000 from the extreme short positions seen earlier this year.
Says Tett:
But what is striking about this unwinding of the carry trade is that it has been relatively smooth, and thus not created a market - or media - panic. Perhaps that is because the yen-dollar swing has not been matched by a similar yen rise against the euro. Or maybe the memory of 1998 has simply left investors better prepared.