Week in FX Asia-Yen, Yen and Yen Again

How big is that Yen bet? Shortening the Yen and waiting sounds too easy. Something so easy can usually spell danger. The increase in Yen short IMM positions would suggest that we are beginning to see the early days of the Yen carry trade. Most of the Japanese political parties are in a race to come up with new and exotic monetary and fiscal policies to artificially weaker their own currency to competitive levels. Who say’s we are not in a currency war? Coupled with the country ‘s massive debt/GDP and a stagnant economy makes natural sense to go with this structural shift in the Yen flows. Be weary, a failure in US fiscal cliff talks could be a large dampener on the negative Yen trade, sending the dollar back towards 80.00 again before year end.



  • CNY Consumer Price Index (YoY)
  • JPY Gross Domestic Product
  • CNY New Yuan Loans
  • EUR German ZEW Survey
  • GBP Jobless Claims Change
  • USD Federal Open Market Committee Rate Decision* EUR ECB Publishes Monthly Report
  • JPY Tankan Large Manufacturers Outlook
  • USD Consumer Price Index

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments.
He has a deep understanding of market fundamentals and the impact of global events on capital markets.
He is respected among professional traders for his skilled analysis and career history as global head
of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean
has played an instrumental role in driving awareness of the forex market as an emerging asset class
for retail investors, as well as providing expert counsel to a number of internal teams on how to best
serve clients and industry stakeholders.
Dean Popplewell