The USD/JPY is one of the 4 Major Currency Pairs alongside EUR/USD, GBP/USD and USD/CHF. Both the US Dollar and Japanese Yen are two of the world’s strongest currencies and together they create the pair USD/JPY, which is also referred to as “The Gopher”.
As both currencies have a base currency of USD, the USD/JPY is positively correlated to the USD/CHF and USD/CAD. This currency pair is also reputable thanks to its low bid-ask spreads and impressive liquidity. These qualities therefore make it a great pair to trade if you’re a newcomer to the Forex world.
Did you know that the USD/JPY currency pair represents approximately 17% of the daily Forex volume? It ranks second after the EUR/USD pair at 28%.
Both the U.S and Japanese economies are strengthened thanks to the fact that the majority of Japan’s export business is targeted at the US. Other than the United States, Japan has several investments in other countries, too.
Factors that have an affect over the USD/JPY currency pair include:
- Natural disasters such as tornadoes, hurricanes or earthquakes.
- Political changes in both countries, such as the US presidential elections.
- Financial reports like the Monetary Policy Statements in Japan or US Federal Reserve announcements.
With our latest tools and technology, you can effortlessly trade USD/JPY at Almahfaza. We provide traders with a responsive platform to easily and quickly open and close trades. Traders can also take advantage of Almahfaza’s educational tools and charts that can help in making better trading decisions.