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Confused about interest rate differentials and carry trades on JPY pairs
Been diving deeper into the fundamentals lately, and while the idea of carry trades on pairs like $AUDJPY or $NZDJPY makes sense when the RBA/RBNZ are hawkish and BoJ is dovish, I'm struggling with the actual 'when' to enter or how much of a factor the differential should be in a trade decision. Is it something you only really consider for longer-term positions, or can it play a role in shorter-term setups too?
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