Japanese Yen carry trade predictions, trading USD/JPY

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*USD/JPY* pulling back from the recent ATH near 162. Let’s breakdown why the *Yen* has recently rallied against the USD, and how we’ve been trading it.

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I will be following you for the rest of my career .. You nailed this on button.

robinsonjcr
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Hi, can you explain if I, as an individual, or a company or firm etc borrowed Yen from a Japanese bank then wouldn't I need to put up collateral like property or is the Carry Trade loans collateralised against the value of what the borrower is speculating on like US medium or long bonds? Are shares treated differently than bonds?
My concern is most of these Yen loans would have been done during the low interest rate period of the last decade or so and value of long term bonds have in the past few years tanked. Arnt most of those Carry Trade positions already massively underwater?
Do the Japanese banks monitor this for each loan and then call "additional funds" in when they see the borrowers position going south? Have the Japanese banks been doing this since US rates started to climb and the value of the bond decline or have they been holding back? A follow up video explaining a guestimate of how much exposure and where it is would be appreciated.

markbrzezinski
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It seems like nobody is talking about this. And I don't think stock investors understand forex and "carry trade". And Yellen was in Japan earlier this month but nothing said about the risk of an appreciating yen.

monicalatvenas
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I just bought some Yen because of my holiday in October. I come from the Euro. Is this smart or not?

Kurama