Short yen trade stops working

|By:, SA News Editor

Short yen (FXY +0.8%) has been as popular a trade as long equities (maybe even more), and it too is reversing in January. Off 0.95% today, dollar/yen is down to ¥102.30 after starting the year above ¥105. Was it the weak Chinese PMI report this week, or the realization that Abenomics - really little more than devaluation - isn't working? Maybe it was just a trade that got too crowded.

The ETF story of 2013 - the Japan Hedged Equity Fund (DXJ -2.2%) - is now off 5.8% YTD, it's taking its sponsor WisdomTree (WETF -7.2%), one of the big individual stock stories of 2013, with it.

Japan ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JSC, ITF, JGBL, JPP, JPNL, JGBT, JPNS, FJP, JGBB