USD/JPY is a Forex ticker that represents the price it will cost you in Japanese Yen to buy 1 USD. FX currencies are shortened to three-letter abbreviations for ease and are called ISO codes. The Forex market trades in these currency pairs and have a quote structure of Base/Quote (USD/JPY).
The live USD/JPY rate is shown below in an interactive chart that you can use for technical analysis. Our real-time news and analysis will keep you up to date with factors affecting the price movements of USD/JPY, both fundamental and technical.
USD/JPY Currency Chart
Recommended Forex Brokers to Trade USD/JPY
The USD/JPY is one of the most traded pairs on the global Forex market. Also known as the ‘gopher’, it denominates the exchange rate between the US dollar and Japanese yen. Its popularity is tied to many factors. Most notably, high volatility and volume with a daily turnover in excess of $900 billion. The USD/JPY is the second most traded currency pair in the world, following the EUR/USD. It is responsible for approximately 17.7% of the Forex daily turnover.
In addition to being driven by the economic growth of the two countries, the USD/JPY pair is influenced by the frequent intervention of the Bank of Japan (BoJ). The BoJ has a habit of intervening in the Forex market when price action and movements may threaten economic growth and the Japanese export industry. These developments sometimes result in sudden price fluctuations.
The USD/JPY pair boasts comparatively low bid-ask spreads and fantastic liquidity. Since the Japanese Yen is highly correlated to gold, the USD/JPY and XAU/USD (gold/US dollar) are negatively correlated. As a result, the higher USD/JPY moves, the lower gold usually goes.
USD/JPY Significant Price Movements
The Japanese Yen has been growing strong since its introduction in 1871, becoming the most traded currency in Asia, and the third most popular in the world. This has largely been attributed to Japan’s economic growth and resilience.
Most recently, the USD/JPY relationship has seen significant fluctuations. The global recession of 2008 affected both currencies and economies. In 2013 the US dollar was on one side of a staggering 87% of all Forex trades. At the same time, the Japanese yen saw the largest increase in trading activity of the other major currencies, rising by 63% from 2010.
In 2013, the USD/JPY trading reflected 18.3% of total FX turnover, an increase of 4% from just three years prior.
USD/JPY Price Analysis
Which is the best broker to trade the USD/JPY pair?
There are many online brokers that support day trading of the USD/JPY pair. We are constantly evaluating new and existing brokers to recommend the most reliable ones. For more information, you can go to our page that reviews and compares the best Forex brokers to learn more about the different platforms where you can trade USD/JPY.
When I trade the USD/JPY pair will I own the actual currency?
No. CFDs allow you to speculate on rises and falls in the currency pair without having physical ownership. With CFDs, you only have to put in a fraction of the market value of the underlying asset when making a trade. Unlike investing, when you trade CFDs, you are not buying or trading the underlying asset. What you are buying/selling is a contract between yourself and the CFD provider.
How to trade the USD/JPY pair?
There are several ways to trade USD/JPY. Whether you opt for a USD/JPY scalping or breakout strategy when you trade could make all the difference to your intraday profits.
Ideally, with USD/JPY trading you want to take advantage of prime time slots outside of the standard hours of operation for the London and New York exchanges. The USD/JPY has a relatively consistent volume throughout the day with occasional spikes in volatility. But analysts agree that the best time to day trade the USD/JPY is between 1200 and 1500 GMT when London and New York are at full pace. Although Tokyo’s opening time comes afterwards, the biggest daily moves often take place during this time frame.
The three analysis techniques are fundamental, sentiment and technical. USD/JPY is a popular pair to trade using technical analysis but like trading anything it is always recommended to have an understanding of the fundamentals that move the market.
See other currency pairs live rates here.