USD/JPY News & Analysis

Recent USD/JPY Forex News

It Hasn't Even Started

I'm looking for quite a bit of USD weakness in the months ahead and right now, we haven't even gotten going.

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SPX500, Yen and Euro

Here's a look at the downside we could see in US equities and how this, along...

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Monday Position Overview

Here's a look at the latest on the positions, along with some analysis of EUR...

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Friday Position Review

Looking at the current exposure as we head into the weekend.

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The Slowly Developing Yen Trade

Here's the latest on our USDJPY short position and some thoughts on the Pound.

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Sweet Time

We're looking at a bit of a slow go for some of these positions, though to be...

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Monday Trade Review on the Charts

Here's an update of our current exposure.

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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.