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Username: Fluffy

Rating:
Guru Stars

Asked to: Jacob Rogers

Date Created: 08 Jun 2018
Category 28
Tag Financial
Question Who are 'Japanese Housewives'?
Advice from Guru
Hello Fluffy,

Japanese housewives is a term used in the foreign exchange world for the many Japanese matriarchs who resorted to currency trading in the first decade of the new millennium. With Japanese interest rates near 0 percent for most of the decade, their motivation for currency trading was to increase the returns on their portfolios. These homemaker-traders are also called "Mrs. Watanabes."

Japanese housewives have had a discernible impact on currency markets. In 2007, Bank of Japan officials said that the housewives' trading activity helped to stabilize currency markets because of their tendency to buy on dips and sell into rallies. A significant amount of this trading was carried out through online margin accounts, which offered leverage of 20 to 100 times. Carry trades, which involve borrowing in low-interest rate currencies and investing in higher yield assets, were also a favored strategy of the Japanese housewives.

The term "Japanese housewives" has also been used to describe day traders.

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