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Chart hopefully this will work

Although it does matter at what level are you taking out the long AUD/JPY position - I certainly wouldn't do it at the current levels. If you took one out around 90 and place a stop under that level you should be OK, perhaps even realising some (50%) of your profits if it goes back over 100 and...

thanks GR...but what do you mean by this? The money you save on the 55%of your loan gets invested in an Asian bank? I thought the point was that their interest rates (and yields) are much lower. The point of the carry trade is to borrow yen at next to nothing interest rate and park it in a high...

Thanks for responding...not sure if I see any risks other than the exchange rate volatility but still trying to understand how it works in practice. So you've got a 80% (interest only?) loan on a residential property of which 55% is in yen, thus on lower interest rate and 25% in AUD with our...

These are called "carry trades" in the financial markets and a lot of people are doing it. Also a lot of them burnt their fingers in July/August last year when the yen suddenly rose against all major currencies. Another popular vehicle for this type of trade is the Swiss Franc but with the...