Currency Pairs – USD/JPY (US Dollar/Japanese Yen)

Currency pairs are distinguished on the basis of their trading features and behavior. The behavior and characteristics of the USD/JPY (US Dollar/Japanese Yen) pair:

Due to the presence of a currency of an Asian country (Japan), this currency pair is the most active trading vehicle in the Asian time zone among the four Majors. After the Euro, the Yen is the most traded currency. Its movement and liquidity remain high even after the Asian market closes and through the working hours of the European market. The daily trade for the Yen is about 90 PIPs on an average. This currency is not influenced by any of the other three major currency pairs: Euro, Cable and Swissy, although sometimes, the Swissy and Yen may share a small correlation. The Yen is also used as a replacement for China’s currency, the Yuan, since the latter does not use the foreign exchange rate.

The Yen trades the best in terms of movement and liquidity during Asian hours, especially during Tokyo (Japan) hours. When the Asian market closes and the European market opens, it starts trading as EUR/JPY (Euro/Japanese Yen) until the European market close and the US market open, when it switches back to USD/JPY trading.