• Rising Tension Boosts USD: Renewed hostilities between the U.S. and Iran are driving up oil prices and strengthening the dollar against the yen, pushing USD/JPY toward 158.00.
• Intervention Watch: Traders are cautious, fearing further Japanese Ministry of Finance (MOF) intervention to defend the yen after suspected actions last week, with the 157.20–157.30 area being a key battleground.
• Yield Differentials: Wide disparities between US and Japanese interest rates continue to fundamentally support the dollar, making sustained yen appreciation difficult.
• Market Liquidity: Light trading due to Japanese holidays (Golden Week) has allowed for volatile moves and increased risks of sudden, aggressive intervention moves.
• Outlook: While intervention has capped gains, the underlying trend remains bullish for USD/JPY, with fears it could drift toward 160 without a de-escalation in geopolitical tensions. [2, 3, 5, 6, 7, 8]

The forex carry trade is a live and well.[2]

You could earn more interest in a week-long carry trade than you could in a year with a traditional savings account, so as you can see, the carry trade is a powerful tool that all forex traders should have in their arsenal.[3] The carry trade is one of the most popular strategies in forex trading because it guarantees some type return on medium or long term positions.[4] Before you start executing carry trades, you obviously need to know what a carry trade is and if your forex broker will allow you to put  a carry trade on.[5]

By understanding what a carry trade is, you are better prepared to trade on the forex market.[6]

The risk of losing money with a carry trade is a definite one, but smart investors use forex trading strategies to minimize these risks.[7]

In spite of the risks, the carry trade is a good and healthy method that offers great returns for patient traders who make the effort to learn about economics and forex fundamental analysis.[8] The yen carry trade is unwinding as china’s struggles cause problems for the aussie in forex trading.[9]

Another development that does not bode well for forex traders in the carry trade is the downturn in international financial markets.[10]

The carry trade is a popular trading strategy used in the forex market whereby speculators buy high-interest-rate-bearing currencies and sell currencies with low interest rates.[11]

Reference URL
1. http://fxmadness.com/2009/09/21/general/forex-carry-trade-is-back/
2. http://www.metacafe.com/watch/1528486/whats_the_status_of_the_forex_carry_trade/
3. http://www.forexcrunch.com/get-carried-to-profits-with-the-carry-trade/
4. http://www.onlineforextrading.com/learn-trading/carry-trading
5. http://www.forexcrunch.com/get-carried-to-profits-with-the-carry-trade/
6. http://www.streetdirectory.com/travel_guide/141655/trading/what_is_a_carry_trade.html
7. http://www.forex-carry-trade.com/
8. http://news.forexdistrict.com/2009/columns/the-currency-carry-trade-make-money-while-sleeping/
9. http://www.donaquilino.com/yen-carry-trade/
10. http://www.gocurrency.com/forex-news/2007/06/27/carry-trade-unwind/
11. http://www.fxcm.com/carry-trade.jsp