From Seekingalpha.com: On January 26, when the Yen was trading around JPY88/USD, we suggested the Yen at the 80 level was like gold at $147/ounce, i.e., on a pinnacle from which the only direction was down. Commodity guru Jim Rogers describes the USD and Yen rallies as “artificial” and the result of forced liquidations (of carry trades).
UBS currency analysts in Tokyo have estimated that approximately JPY20 trillion of yen carry trades were unwound in the second half of 2008, and were a major factor in the yen’s spurt to the JPY88/USD level. …. Full Article: Source