Since I last recommended investing in the Yen, FXY, an ETF that tracks the Yen, has increased by 4.58%, primarily driven by the unwinding of the carry-trade. Bloomberg noted that the Yen is now at its 4-month high. The Yen has broken the support level of 118 Yen for 1 USD.
I have restored my long position this morning, expecting a slide of the market indexes today in light of the PPI release and a further slide tomorrow after the release of the CPI, which I expect to be slightly higher than expectations.
In comparison, AAPL has increased by only 3.66% in the same time frame, and the Dow Jones Industrial Average has decreased by 4.28%.
I think I know now which currency Warren Buffet has been betting on.