UBS see limited catalysts that could outweigh the USD/JPY carry trade

<p>A back-handed view on the USD/JPY carry trade from what it seems is a reluctant UBS:</p><ul><li>we move our view on the yen from most preferred to neutral</li><li>Given the relative strength of the US economy and the soft removal of Japan’s yield-curve control policy, we see limited catalysts that could outweigh the negative 5% carry that a long yen, short dollar position entails</li></ul><p>The analysts are not entirely convinced though, recommending keeping options one via … err, options:</p><ul><li>Nonetheless, we continue to see a long yen position as an effective downside hedge, particularly if implemented using optionality</li></ul><p>USD/JPY update:</p>

This article was written by Eamonn Sheridan at www.forexlive.com.