Yen carry traders dealt New Year blow

The currency pair fell from 226.83 on December 26, when many traders entered the trade, to 214.64 on January 4. A London-based analyst said several major traders entered into long GBP/short JPY positions from December 26 to December 28 and then rolled over the trade to January 7, attracted by the guarantee of 10 extra days of interest before converting back into yen.

However, the yen appreciated sharply on December 27 on the back of newly released data that showed inflation accelerated to its