NZD/JPY Hits 81 - Carry Traders With Strong Gains

The carry trade carries on to 81.00. After falling 1300 pips in from February to May, the NZD/JPY recoups all the losses in the next seven months. In addition, this pair yields the highest of any heavily traded currency pair at 7%. So even if you bought at the very high in February, if you stayed in the trade you come out doing fairly well. Using 10:1 leverage which is a standard amount for many professional traders, you would have earned 70% returns in the last ten months.

Of course if you did not buy at the top, you would be doing much better with capital gains as well as any carry interest generated.