I’m watching this setup for now and looking to fade the Usdjpy rally and you’re absolutely right, no Position atm but I wanted to get this out here a bit to discuss and explain it a bit as well as throw up some charts and how exactly to capitalize
I’m watching this setup for now and looking to fade the Usdjpy rally and you’re absolutely right, no Position atm but I wanted to get this out here a bit to discuss and explain it a bit as well as throw up some charts and how exactly to capitalize
The YCC change will be December to March 24. Swap markets are now liquid I.e it’s no longer a surprise and illiquid event. Japan changes at a very slow pace. Yen rates are -.25 & Usd rates are 5.5%. Which one matters more if rates move? As we start to near peak rates, & Japan will look to intervene as well as change policy... I hope this helps
I fully agree with you on that. Def agree about 2H 2023 and carry trade unwinding. I still don't fully understand YCC though and will dig deeper on that in the context of ending the YCC. One parting thought: I wouldn't particularly trust the bankers when they say YCC is temporary. It might be, but, as we all know, temporary public policies have a nasty habit of becoming perpetual ones...
Thank you for your reply and interesting discussion!
I’m watching this setup for now and looking to fade the Usdjpy rally and you’re absolutely right, no Position atm but I wanted to get this out here a bit to discuss and explain it a bit as well as throw up some charts and how exactly to capitalize
The YCC change will be December to March 24. Swap markets are now liquid I.e it’s no longer a surprise and illiquid event. Japan changes at a very slow pace. Yen rates are -.25 & Usd rates are 5.5%. Which one matters more if rates move? As we start to near peak rates, & Japan will look to intervene as well as change policy... I hope this helps
I fully agree with you on that. Def agree about 2H 2023 and carry trade unwinding. I still don't fully understand YCC though and will dig deeper on that in the context of ending the YCC. One parting thought: I wouldn't particularly trust the bankers when they say YCC is temporary. It might be, but, as we all know, temporary public policies have a nasty habit of becoming perpetual ones...
Thank you for your reply and interesting discussion!