So as the yen to short Yen to make money diminishes, other currencies have been sent sliding including our own dollar, but also the NZ dollar, the British Pound, against the Yen etc. Note, on these charts, the Yen has broken above 50 day moving average on each of them.
So that's enough exhibits to prove the point that a major shift has occurred with the Yen versus the currencies of the world. By the way, Thestreet.bomb is using a columnist to say the carry trade concerns are over blown. I won't name names, but it's the same guy who said in early February, the subprime concerns were overblown.
This leads me briefly to the dollar, where it's in the dog house again vs a basket of currencies.
Yen futures at last check rose another 60 points points today and that was in spite of Mr. Yen (Sakakibara) being pulled from the woodwork to declare the Yen carry trade will be with us for some time to come. Whether Mr. Yen's prediction verifies correctly will depend on current predictions for a Japanese interest rate increase in May and whether our economic problems become severe enough for the Fed to lower rates by May or June. The 87 area on the 1st Japanese Yen chart is the level that I'm keeping a very close eye on.