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The credit with oanda for an AUDJPY trade position is 6.15%, so offsetting a 9% loan in Aus of the same size the net interest is 2.85% Margin requirements are flexible, 5% is possible but I try to keep it over 10%, i.e. 30k on 300k position. Interest is paid of course to me on this margin...

No I'm not talking about a hedge, I'm talking about synthetically borrowing in Yen, in which case you borrow in Yen (short) & Buy AUD (long), so long AUD/JPY and collect the interest differential to offset a normal Australian loan. No other Yen position involved.

It's easy... but the high risk is still there. Yes I do it, but not using the AUDJPY pair in the example, but rather a bunch of different currency pairs paying around $500/month on an exposure of around 320k, and I keep the margin above 10%, not 5% in the example. It's not related to any...

You could synthetically borrow in other currencies by setting up an opposing position via an FX trade, e.g. on oanda, long 300k AUD/JPY will generate a carry trade income of $1500 per month, partially offsetting an Australian loan of the same size which may cost $2200 per month, so loan costs...