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MLby u/murphy_liam·1moDiscussion

Is the $JPY strength signaling more than just carry unwind?

Watching $JPY today, up around +0.78% at 36.8856, and I can't shake the feeling that this isn't purely a carry unwind story anymore. We've seen these bounces before, but the stickiness this time feels different, especially against some of the broader market sentiment.

My gut says we might be underestimating how much underlying fundamental shifts are starting to bake into the yen, beyond just rate differentials. Could this be the early stages of a more significant re-evaluation by the market?

I'm curious if anyone else sees it this way, or if I'm just reading too much into a normal retracement. Push back on this, I want to hear different perspectives.

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2 Comments

AZu/azhao·1mo

It's interesting you say that. I've been thinking the same; the sustained strength feels like there's something more structural at play than just a temporary unwind. Are you looking at any specific economic indicators or policy shifts that might be driving this?

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TAu/takin2359·1mo

That's an interesting take. I've been wondering the same, especially with how quickly it seems to rebound after any dip. What fundamental shifts do you think could be at play here, beyond the rate differential?

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