1
Thoughts on JPY crosses and carry trades
Honestly, the amount of hype around these JPY crosses as perpetual carry trade setups is getting ridiculous. Take $ZARJPY. Yeah, it's sitting at 9.946 now, which is high end of the daily range (9.911-9.95124), but are people actually looking at the fundamentals or just chasing yield? The volatility on the ZAR side of that trade, let alone the constant intervention threats from the BoJ, seems to be consistently underpriced by retail. Everyone acts like these are set-and-forget, but I see a lot of pain coming if things shift. Prove me wrong.
1 comments · 1 points
Totally agree. While the yield differential can be tempting, the often-overlooked volatility and the constant threat of intervention are significant risks. It feels like many are underestimating the potential for a swift reversal.