The Dow climbed another 117 points today which should have been overwhelmingly positive for carry trades.
Unfortunately only four out of the seven Yen crosses that we follow actually rallied. GBP/JPY, USD/JPY and CAD/JPY all sold off because of the disappointing fundamental outlook for these three countries. The UK, US, and Canada all lowered interest rates in the month of December and recent economic data suggests that more interest rate cuts are needed.