Japanese Housewives

Loading the player...

DEFINITION of 'Japanese Housewives'

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

BREAKING DOWN 'Japanese Housewives'

Japanese housewives have had a discernible impact on currency markets. Bank of Japan officials said in 2007 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 for many of the Japanese housewives.

RELATED TERMS
  1. Funding Currency

    The currency being exchanged in a currency carry trade. A funding ...
  2. Currency Carry Trade

    A strategy in which an investor sells a certain currency with ...
  3. USD/JPY (U.S. Dollar/Japanese Yen) ...

    The abbreviation for the U.S. dollar and Japanese yen (USD/JPY) ...
  4. Lost Decade

    The 1990s for Japan, and the first decade of the current millennium ...
  5. International Currency Exchange ...

    The rate at which two currencies in the market can be exchanged. ...
  6. Currency

    Currency is a generally accepted form of money, including coins ...
Related Articles
  1. Trading

    Who are Japanese Housewives?

    The term “Japanese housewives” refers to the thousands of Japanese women who traded in the currency markets in the first decade of the new millennium.
  2. Markets

    Forex Currencies: The USD/JPY

    By Brian PerryThe Japanese economy is the largest economy in Asia and the world's second-largest national economy. Japan is a significant exporter throughout the world. Because of Japan's large ...
  3. Trading

    Currency Carry Trades 101

    This strategy can provide returns even if the currency pair doesn't move a cent.
  4. Trading

    The Effects Of Currency Fluctuations On The Economy

    Currency fluctuations are a natural outcome of the floating exchange rate system that is the norm for most major economies. The exchange rate of one currency versus the other is influenced by ...
  5. Trading

    The Forex Market: Who Trades Currency And Why

    The forex market has a lot of unique attributes that may come as a surprise for new traders.
  6. Trading

    4 Of The Most Popular Traded Currencies

    Every day, trillions of dollars trade in the forex market. Here are a few of the most popular currencies, and some characteristics for each.
  7. Trading

    Drastic Currency Changes: What's The Cause?

    Currency fluctuations often defy logic. Learn the trends and factors that result in these movements.
  8. ETFs & Mutual Funds

    Protect Your Foreign Investments From Currency Risk

    Hedging against currency risk can add a level of safety to your offshore investments.
  9. Markets

    Forex Currencies: Trading Strategies

    By Brian PerryFor beginning investors, there are a variety of currency trading strategies available. However, most strategies fall into two broad categories: hedging and speculating. Hedging ...
  10. Trading

    The Credit Crisis And The Carry Trade

    When boom times turned to bust, these trades proved devastating for traders and the broader markets.
RELATED FAQS
  1. Can I trade a currency when its main market is closed?

    In the forex market, currencies from all over the world can be traded at all times of the day. The forex market is very liquid, ... Read Answer >>
  2. How often do exchange rates fluctuate?

    Exchange rates float freely against one another, which means they are in constant fluctuation. Currency valuations are determined ... Read Answer >>
  3. How are international exchange rates set?

    International currency exchange rates display how much one unit of a currency can be exchanged for another currency. Currency ... Read Answer >>
  4. What is the value of one pip and why are they different between currency pairs?

    In forex markets, currency trading is done on some of the world's most powerful currencies. The major currencies traded are ... Read Answer >>
  5. How do changes in national interest rates affect a currency's value and exchange ...

    Understand the role that changes in interest rates can play in determining the value and foreign exchange rate of a country's ... Read Answer >>
  6. Is there a world currency? If so, what is it?

    There is no such thing as a world currency. However, since World War II, the dominant or reserve currency of the world has ... Read Answer >>
Hot Definitions
  1. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  2. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  3. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  4. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  5. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  6. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
Trading Center