Putting together a yen carry trade

A question from Yahoo! Answers:

What’s the easiest way to invest in the yen carry trade?

I’m an investor in stocks, bonds, real estate, and currencies, but I really don’t know how to engage in the yen carry trade although I’m very familiar with profit/loss implications behind the carry trade. What brokerage firm or other financial outfit can set me up? Are the fees high?

To engage in the yen carry trade, you need to be able to borrow the yen, which means you must have a good credit standing with at least one major Japanese bank.

The alternative is to conduct the carry trade in the futures market; you would buy Eurodollar futures and short Euroyen futures, while hedging the currency risk with a long position in yen futures…

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