The USD has been challenging to trade in the recent global market environment
Long-Run equilibrium exchange rates may be changing due to Central Banking policies & inflation
Covered interest parity is being challenged with recent market events
Being long the Japenese Yen Trust (FXY) offers significant upside via a bull call spread
We have outlined trade which can be accessed on profile however a summary is provided
2 Month Call Skew is .97 standard deviations above 1 year mean 2 Month Volatility is .31 standard deviations below its 1 year mean FXY (The Yen) is moving on risk concerns but we believe expectations that the BOJ may finally taper their balance sheets after a long run of solid growth that will drive it further
Interested in all thoughts & analysis on our idea.