Even as the yen strengthens against the dollar to levels not seen for a couple of years, Japanese retail punters continue to sell it. According to Lee Hardman, a currency economist at the Bank of Tokyo-Mitsubishi UFJ in London, this poses “a considerable risk of capitulation if retail investors suffer further losses.” Hardman argues that the case for putting on the carry trade is weak and that several key cross levels are fast approaching. It will be interesting to watch.