Unwinding the carry trade versus the Bank of Japan

Last week, I pointed out an opportunity for a day trade in the USDJPY and a possible longer term trade. The day trade was good but the selling pressure continued forcing the USD to go below 100 Yen. This is the first time in ten years and a move that is causing concern to Japanese exporters. 

If you notice that the GBP also sold off against the Yen, it indicates that the general Yen strenghtening has something to do with the unwinding of the carry trade.

I would still bet on going long the dollar against the yen though and I will take the following trade if it triggers.

I would look to go long above 99.25 and to stop out below 98.85, risking 40 pips. Watch this trade on Sunday evening 5pm New York time when the market opens in Sydney.