USD/JPY News & Analysis

Recent USD/JPY Forex News

One More Push

Been long the Euro and looking for the currency to really break out in the days ahead.

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About the Euro Trade

Here's an overview of this latest position taken in EURUSD.

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Make or Break Time for USDJPY

I've been looking for USDJPY to stall out for a bearish reversal and the majo...

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What the Dashboards are Telling Us

Today, we look at the JKonFX dashboards to show why things have been quiet. W...

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If Cable Breaks Last Week's High...

We saw the Pound retreat sharply last Friday, but if setbacks hold up and the...

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Looking to Buy the GBPUSD Dip

We booked a nice profit on GBPUSD the other week and will look to get back in...

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Remember Our Friend AUDNZD?

It's been a while, but AUDNZD is doing some things that could have us dipping...

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Explore Currency Pairs

The US Dollar cross with the Japanese Yen (USD/JPY) currency pair is one of the most important pairs to watch and is also one of the most actively traded. This pair is used a lot as a barometer for global risk sentiment given the traditionally low interest rate policy in Japan, which acts as an incentive for investors to fund investments via the lower yielding Yen into higher yielding currencies.

While the US economy is viewed as the largest and most sophisticated and stable economy in the world, the Japanese economy is less stable and very much dependent on its export economy, which means the Japanese economy also benefits from a weaker currency. But if you're looking to make a play on risk sentiment, you would be inclined to buy this pair when risk appetite is strong, because many will be selling Yen to buy higher yielding riskier investments. Meanwhile, if risk appetite wanes, there will be a flow of funds out of the higher yielding, riskier currencies and back into the Yen, which would making selling the major pair the common play in this scenario.