The position is: Long USD 3m short Yen at 103.10 average.
However I am not comfortable being long USDs, as I believe the USD has some serious weakness ahead in the next few years. However I am happy being short JPY.
Sooooo, I began discussions with my bankers. If I went long AUD and short USD3m would they offset the USD3m long/short and treat it as a AUD/JPY deal for limit purposes?
Essentially doing another 3m USD and marking the position to limits on a gross basis would mean I would not have enough capital to do this and my other trades as well, or at least not comfortably.
I got an agreement today that they would net the trades and treat it as a AUD/JPY deal if I added the AUD/USD leg.
So sold USD3m and bought AUD at 0.8030, thus making the trade long AUD3,735,990.04 short JPY at 82.79. Given that the current spot is at 78.00 I still have a long way to go, but at least I do not have a USD exposure, which is what I wanted to move to.
And I haven't impacted on my limits at all!