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Japanese Yen Forecast: The EUR/JPY and GBP/JPY Moves that Could Kick the Carry Trade Unwind into Overdrive

The massive “yen carry trade” unwind was technically- and sentiment-driven, and could absolutely run further after pausing for a few weeks. EUR/JPY and GBP/JPY are in play.

japan_05

Japanese Yen Forecast: USD/JPY Regains 148.00 – Can the Carry Trade Revive?

A confirmed break above the 149.50 barrier on USD/JPY could open the door for a steeper bounce toward the 50% retracement near 152.00 next

japan_09

Japanese Yen Forecast: BOJ “Green Lights” Resumption of Carry Trade but Questions Remain

The technical bias in USD/JPY will remain to the upside as long as it remains above the 146.00 level.

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US dollar forecast: Unwind of carry trades

So far, we have only seen the euro show any signs of strength apart from those where interest rates are lower – JPY, CHF and CNH. The broader US dollar forecast should turn more negative once the equity markets shown signs of stabilisation light of the sharp repricing of US interest rates.

Bank notes of different currencies

Fiat Money: What is a Fiat Currency?

A fiat currency is a monetary instrument backed by a national government like the British pound or Canadian dollar. Learn how fiat currencies operate and how they compare to other types of money.

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February 17, 2023 04:05 PM
    Board of currencies

    How to use the currency carry trade strategy

    A carry trade is a trading strategy that involves borrowing a low-yield currency and investing in a high-yielding asset to exploit the interest rate differential. Carry trades are most common in forex trading with traders borrowing the low interest Japanese yen to buy higher interest currencies. Learn what currency pairs work best and how to execute the strategy yourself in our full guide.

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    October 25, 2022 09:15 AM
      TV Screens showing stock values

      Back from the dead? The revival of the FX carry trade

      As inflation rises to multi-decade highs, central banks are once again raising interest rates aggressively, suggesting that the carry trade could may be back from the dead.

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