USD/JPY: Carry Trade Appeal Grows Amid Tech Earnings Optimism
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Robust earnings from Snowflake and HPE, both riding the AI infrastructure boom, are reinforcing a broader narrative of US economic resilience. That narrative supports continued yen funding of dollar-based carry trades, a structural theme that has kept USD/JPY elevated in recent sessions.
Broadcom's earnings beat—despite a muted stock reaction—still points to durable enterprise AI spending, a factor markets are reading as supportive for US growth expectations relative to Japan's more sluggish recovery.
As long as US corporate earnings continue outperforming, yield-seeking flows are likely to keep pressuring the yen, with USD/JPY remaining the preferred vehicle for carry-oriented positioning.