USD/JPY News & Analysis

Recent USD/JPY Forex News

Canadian Dollar Jumps on the Radar

It's been a quiet week thus far, though things look to be picking up for the latter portion.

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Weekly Open Technicals

Nothing jumping out just yet but here's what you need to know.

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The Three Major Pairs

Today, the focus is on the three most actively traded pairs in the FX market.

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I'm Not Buying It

Many out there are getting ready for the Yen to fall off a cliff, but I still...

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Plenty of Action in the Early Week

Tuesday was a wild one and we were able to get into a couple of trades while ...

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When the Facts Change

On Wednesday I bought into a extreme drop in the price of GOLD, looking for i...

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Charts I'm Watching on Fed Day

Here are the charts where I think there could be a play as soon as today. 

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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.