USD/JPY News & Analysis

Recent USD/JPY Forex News

Where's the Next Trade?

No trades this week into Friday, but there's definitely signs of that next one coming soon.

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Mid-Week Technical Overview

We haven't see a whole lot thus far this week, though it all feels like we co...

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Short Term Shots

While I still see room for the Euro and Pound to run, there could be some goo...

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Excessive Pride and Overconfidence

There's been a lot of one way price action in risk assets over the past sever...

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The Next Measured Moves

Here's a closer look at where these latest breakouts are going to take us.

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The Big Levels for Friday

Here's an overview of the major markets, along with a position update.

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USDJPY Coming Into Next Big Level

Good to see the drop in USDJPY but we now will need to see a daily close belo...

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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.