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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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LCG

CFD Trading - MT4
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LCG

ECN Trading - MT4
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LQDFX

Islamic Account
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LQDFX

Gold Account
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LQDFX

ECN Account
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HotForex EU

Currenex Account
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FXCC

ECN Standard
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FXCC

ECN Advanced
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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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FxPro

cTrader
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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

USD/JPY Selloff to Face Fresh Fed Rhetoric; RSI Signal in Focus ... Nasdaq

DailyFX.com - Fundamental Forecast for the Japanese Yen: Neutral USD/JPY First 9 Day Drop Since 2011 USD/JPY Continues to Search for. More »

USD/JPY – Yen Hits 4-Month High, US Jobless Claims Jump MarketPulse (blog)

The Japanese yen has ticked lower in Thursday trading. In the North American session, USD/JPY is trading at the 111 line. On the release front, US unemployment claims jumped to 258 thousand, well above the forecast of 240 thousand. There was better ...and more » More »

USD/JPY: Another Day Another (Weaker) Dollar Investing.com UK

The dollar's relentless selling saw the USD/JPY finally break below key support around 111.55/75 at the start of this week. It has since held below this area, which suggests further technical follow-up selling could be on the way. The sell-off has ...and more » More »

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