USD/JPY News & Analysis

Recent USD/JPY Forex News

Revisiting the GOLD Chart

We haven't looked at GOLD in quite some time. Here's some insight into the outlook for the yellow metal.

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Pound Goes Parabolic

We talked about selling GBPUSD up into the 1.3500 area and the short is in pl...

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The Long and Short of It

It's been wild out there and we've just initiated a fresh position. Here's a ...

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Another USDJPY Fake Out?

We opened the week with USDJPY catching the market off guard one way and we c...

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US Dollar Has Some Pride

The beaten down Buck is doing what it can to put up a little fight in 2017.

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Moving and Shaking

Our core USDCAD position is starting to move in the right direction, the Euro...

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These Two Major Pairs

I've been taken with the price action in GBPUSD and USDJPY of late and here's...

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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.