NZD/JPY is higher for the ninth consecutive day today.
In times of relative stability, traders borrow the low yielding yen and buy the high yielding New Zealand dollar. It’s been going on for years and the environment in early 2013 as mostly been a carry trader’s dream.
But with a carry trade, there are always scary dark clouds on the horizon. Case in point: the nine days of gains simply erase the two day plunge following the Italian election.
NZDJPY four hour chart
It takes nerves of steel to stay in the carry trade, but it always seems to pay off.
