Author says Treasury is telegraphing yen-buying intervention to prop up JPY. Official yen purchases would tend to strengthen JPY vs USD, lifting FXY. Long FXY as a short-term play on intervention-driven yen strength. Intervention could be temporary, poorly executed, or overwhelmed by carry-trade flows.
Author says Treasury is telegraphing yen-buying intervention to prop up JPY. Official yen purchases would tend to strengthen JPY vs USD, lifting FXY. Long FXY as a short-term play on intervention-driven yen strength. Intervention could be temporary, poorly executed, or overwhelmed by carry-trade flows.