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USD/JPY from 0 Pips

Compare Forex brokers and accounts with tight USD/JPY spreads. Find the best broker for your Japanese yen carry trades and "BoJ intervention" trades:

AvaTrade

MT4 Floating
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FXCC

ECN Standard
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FXCC

ECN Advanced
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LiteForex

ECN Account
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FxPro

cTrader
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InstaForex

Eurica Account
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FXGiants

Micro Account
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FXGiants

Premium Account
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FXGiants

0 Pips on Majors
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FXOpen

ECN (MT4) Account
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FXPRIMUS

ECN Premier
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Japan is an economic powerhouse and the world’s third largest economy behind the United States and China.

The Japanese yen is the third most actively traded currency and the USD/JPY is the second largest currency pair by trading volumes according to the 2010 BIS survey. The depth of its capital markets and the liquidity of its currency make it popular with investors seeking exposure to Asia.

Bank of Japan intervention

The Bank of Japan (BoJ) is an active participant in the foreign exchange markets. The central bank intervenes on a regular basis to correct what it considers to be excessive currency appreciation or depreciation. If you're trading the yen and hold positions overnight, you should be aware that the BoJ can intervene at any time and without notice. If you’re waiting on the sidelines, you’ll want to time your entry carefully as a BoJ intervention can trigger large price jumps.

Carry trades and the Japanese yen

The Bank of Japan has kept interest rates very low since the mid 1990s in an attempt to spur economic growth. The policy of low to nil interest rates has made the Japanese yen a popular choice for carry trades. You could borrow in Japanese yen and re-invest the proceeds into higher yielding currencies to capture the interest rate differential. Carry trades put downward pressure on the yen and go some way towards explaining exchange rate volatility as investors open and unwind positions.

Trading the USD/JPY

The USD/JPY enjoys strong liquidity and low bid ask spreads. Carry trades and BoJ intervention trades create opportunities for discerning traders. This makes the Japanese yen a strong currency for beginners and more experienced foreign exchange traders alike.

Compare USD/JPY spreads and leverage across popular Forex trading accounts with our interactive chart, or find an account that matches your experience and preferences with our broker search tool.

Latest news

Former IMF economist (now hedge fund CEO ) says USD/JPY to 120 in 6 months ForexLive

Further out, sees USD/JPY to 100 by early 2017. Cites the Bank of Japan policies of controlling yields and adding stimulus through bond purchases reaching a limit. And then .... "The BOJ is closer to the limits of their unconventional monetary policy ...and more » More »

USD/JPY – Yen Hugging 113 as US Markets Off for Holiday MarketPulse (blog)

The Japanese yen is almost unchanged at the start of the week. In the Monday, session, USD/JPY is trading just above the 113 line. On the release front, Japan's trade surplus fell sharply to JPY 0.16 trillion, well short of the forecast of JPY 0.28 ... More »

USD/JPY - Yen Hits 1-Week High As Greenback Under Pressure Seeking Alpha

The Japanese yen has posted losses on Friday, continuing the upward movement which marked the Thursday session. Currently, USD/JPY is trading at 112.80. The week wraps up on a quiet note. There are no Japanese events on Friday, and the sole US ... More »

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