This trade has had it's share of surprises. Have added to it and reduced it as the markets have fluctuated.
The sub prime mess and the impact on the US economy has scared off a lot of the carry trade interest. So the NZD/JPY goes down and at one point was around 78.00 again.
But high NZD yields have driven the cross back up to 91.00 as well, so this cross has traded in a wide range over the last few months and is now back to the level it was when I last commented on it and am still in profit.
Am still of the view that the NZD/USD will breach 0.8000 again this year.
The NZD/JPY will also test higher, target is around 100, but probably next year.
Will look to acquire more on moves into the 80.00- 82.00 area.