USD/JPY, also known as the "Ninja", is a heavily traded currency pair in the forex market, representing the exchange rate between the US dollar and the Japanese yen. The pair is popular among traders due to its tight spread and cost-effective nature. The yen is often viewed as a safe-haven currency, given Japan's net creditor status and large current account surplus. Since the US abandoned the gold standard in 1971, the yen has appreciated significantly against the US dollar.
The Bank of Japan (BOJ) intervenes frequently in the forex market to prevent excessive fluctuations in the yen's exchange rate, which can significantly impact the USD/JPY exchange rate. Traders can use technical analysis tools, such as charts and indicators, as well as fundamental analysis, such as evaluating interest rate differentials, to analyse the behaviour of USD/JPY and forecast its movements.
USD/JPY is often traded by investors and traders for hedging purposes. For example, Japanese corporations may use USD/JPY to hedge against currency risk from exports to the US. The pair can also be influenced by geopolitical events, such as trade disputes between the US and Japan, as well as economic indicators, such as GDP, inflation, and unemployment data.
Trading USD/JPY via CFDs allows investors to speculate on the future direction of the currency pair without owning the underlying asset. CFDs offer several advantages over traditional forex trading, including the ability to go short and leverage trading positions.
XTB offers CFD trading for the USD/JPY forex pair with near real-time movement tracking via our xStation trading platform.
USD/JPY has a unique characteristic compared to other forex pairs, as the yen is the counter currency. Therefore, pairs like USD/JPY have pip values in the second decimal place. The main influences on USD/JPY are the interest rates in both countries.
It's important to note that CFDs are complex financial instruments and carry a high risk of losing money rapidly due to leverage.
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Complete the form and send relevant documents - all without unnecessary formalities. The opening of an account depends on an appropriateness assessment, verified by a test.
Choose a deposit method convenient for you from a range of available ones, including instant and free payments
USD/JPY investment in forex is the trading of the United States Dollar (USD) against the Japanese Yen (JPY). This currency pair is one of the most actively traded pairs in the forex market, and it represents the exchange rate between the two currencies. Investors can profit from changes in the exchange rate by buying or selling this currency pair.
There are several factors that can impact the USD/JPY exchange rate, including economic indicators, political events, and monetary policy decisions. Economic indicators such as GDP, employment rates, and inflation can affect the strength of the two currencies and thus the exchange rate. Political events such as elections or trade negotiations can also affect the exchange rate. Additionally, monetary policy decisions made by the Federal Reserve and the Bank of Japan can also impact the exchange rate.
The best time to trade USD/JPY in forex is during the Asian trading session (between 23:00 to 08:00 GMT) when both the US and Japanese markets are open. This is because there is increased volatility and liquidity during this time, which can lead to greater opportunities for profits. Traders should also be aware of any major economic announcements or news events that could impact the currency pair.
USD/JPY trading, like any forex trading, carries risks. These risks include market volatility, leverage, and geopolitical events. It is important for traders to have a solid understanding of technical and fundamental analysis, as well as risk management strategies, before entering into USD/JPY trading or any other forex trading.
Profits and losses in USD/JPY trading are calculated based on the difference between the buying and selling price of the currency pair. For example, if a trader buys USD/JPY at 110.50 and sells at 110.75, the profit would be 25 pips. However, if the trader sells at 110.25, the loss would be 25 pips. It is important to understand pips and lot sizes when calculating profits and losses in forex trading.
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