Japanese housewives getting roasted...

Discussion in 'Forex' started by ASusilovic, Aug 16, 2007.

  1. And to think that about a month ago, it was around 122.50. And WHEN the Fed lowers rate, this thing will sky rocket.

    Someone somewhere had to be really hurting.
     
    #11     Aug 16, 2007
  2. ..............lol...............amazing. now this shit rocks, volatility was extremely low past few months. Time to be riding the waves in forex now.
     
    #12     Aug 16, 2007
  3. keep an eye out for BOJ intervention. 115.00 they will try to bring it back to this level.
     
    #13     Aug 16, 2007
  4. FWIW - I have prior intervention at 110 level - but that is years ago - nikkei maybe 12K level then.
     
    #14     Aug 16, 2007
  5. more recent level.. has been documented to be at 115.00
     
    #15     Aug 16, 2007
  6. watch for continued pressure on the carry as us market open nears.
     
    #16     Aug 16, 2007
  7. nice call ... dude !

    :)
     
    #17     Aug 16, 2007
  8. GBP/JPY was total madness today ! :eek: :D
     
    #18     Aug 16, 2007
  9. Mrs Watanabe’s orderly exit

    One point of hope in recent weeks, notes Gillian Tett in Friday’s 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.

    [​IMG]
     
    #19     Nov 30, 2007