USD/JPY News & Analysis

Recent USD/JPY Forex News

Charts Show Big Lag in Commodity FX

We have been seeing a breakaway in FX, where the major currencies are performing a lot better, led by the Euro.

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Euro Trying to Reassert

Tuesday's move in the Euro was a bit of a statement move. Here's why...

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What Must Happen

Here's a look at the charts we think are interesting and important right now.

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The Way Things Move

Big things happen in markets, but they don't happen every day. As obvious as ...

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All about the Big Player Charts

The way things have been moving, it's important to be watching those major cu...

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Anticipating the Next Big One

I keeping looking for decent USDJPY short exposure. Let's see if we can get i...

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Three Subtle Moves

It hasn't been super exciting out there, though there have been some moves th...

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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.