Medium Term Opportunity Perhaps?

The Japanese Yen had a big rally having gained 160 pips vs the USD heading into Monday morning. We see a very close relation between the stock market decline and the JPY rise. Mainly, a strong JPY will hurt exporters, a country which relies strongly on selling abroad. Many of us might wish we got into this rally earlier for some quick gains, however, it may not be too late yet. The long awaited rise of interest rates in Japan have some large implications for its currency. Although the USD/JPY is since bouncing back, carry trade strategies tend to be longer term in nature. Thus, it might not a bad time to go long the yen for the medium term as more people decide to liquidate their Yen-based debt. In addition to this, more Japanese will begin to repatriate their yen.