The Yen sank yesterday, the Swiss Franc did as well. The world's major stock indices have continued to recover; if I am not wrong, the German's DAX is already at a new, multi-annual high.
To me all these short-term developments spell out very clearly that the carry trade is back. The Japanese currency might have just become the Reuters's 'low-yielding Yen' once more.
 
I continue to believe that there are technical as well as fundamental clues suggesting the short-lived panic seen several weeks ago in the Yen as well as major stock markets from both sides of the Atlantic only heralded what in the future may come as a far more ample movement - one counter to already well-established, multi-year global trends. However, as I wrote recently, my leading opinions do not count as much as certain price configurations do.
 
I have a feeling that when the Yen starts appreciating again just out of the blue, the major stock markets will record a solid downmove.
This explains why I as of late have been checking the Yen cross pairs always in tandem with the world's major stock indices. It also explains, at least partly, why I recently have been apprehensive about going long the Yen, even against the US Dollar.