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What happens if the JPY appreciates against USD? Do investors hedge this (I assume this incurs a cost) or do they do this "naked"?

If JPY appreciates against USD they don't make money or can even lose money. I'm sure there is some hedging going on, but I don't know for sure the mechanics of it all: https://www.thebalancemoney.com/yen-carry-trade-explained-pr...