Carry Trades Stuck in a Range

The Japanese Yen crosses have been stuck in a range for the past week as the market tries to figure out whether we are simply in the eye of the storm or if the worst is really behind us.

Non-farm payrolls will go a long way in helping to resolve some of this confusion for anyone who is on the fence. We believe that more losses are to come and carry trades, which still have not recaptured the highs that they made in the last week of August, are still in a broad downtrend. There is no significant Japanese data expected to be released tonight.

Written by Kathy Lien, Chief Currency Strategist of