USD/JPY News & Analysis

Recent USD/JPY Forex News

What Happened to GOLD?

Intense drop in the price of GOLD on Friday but I'm not convinced this changes the outlook.

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The Major Currencies and Our Favorite Cross

Here's a Friday overview of EURUSD, USDJPY, GBPUSD and AUDNZD.

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Here Comes Our Friend Again!

AUDNZD has been old faithful when it comes to the trading and after booking p...

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USDJPY Spotlight

The strategy with USDJPY continues to be the same and we could get an opportu...

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Looking at the Weekly Charts

Here's a look at the weekly charts across these major currency pairs.

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Pound to Run Strong...Even Against Euro

I have talked about my expectation for GBP outperformance, which extends acro...

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USDJPY on the Charts

Here's a closer look at what's going on with USDJPY and why I like selling ra...

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You can also find charts, news and analysis on many other currency pairs.

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.