The Japanese Yen carry trade has been the centre of much debate over the past two years, but for good or for ill there are signs that it may well be coming to an end. The first indication that the carry trade could be in jeopardy appeared this time last year when the US subprime disaster hit the markets very hard. This immediately sent a warning shot across the bows of those who had sought cheap financing in Yen and invested it in higher yielding assets denominated in other currencies, mainly U.S dollars.