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This page shows the exchange rate of the Japanese Yen against most world currencies. It presents high-frequency updated data directly coming from more than 170 big interbank liquidity providers such as ABN Amro, Abbey National Bank, JP Morgan Chase, Zurcher Kantonal Bank, UBS Investment Bank, Westpac and many more. This tool is specifically designed for traders demanding an excellent rates service. The real time streaming feed displays Open, High, and Low rates as well as the performance in pips and percentage. Click on a pair to get detailed information.

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WHAT DO I GET HERE?

This page shows the exchange rate of the Yen (JPY) against most world currencies. It gives you valuable insights in terms of Relative Strength of the Yen and enables you to better understand intermarket relationships. Traders should look at it to establish a successful strategy, looking at the big image rather than looking at a single-dimensional scope.

Being organized by big geographic zones, it also provides information about capital flows between continents. For example, a negative performance of European currencies against the Yen shows money is migrating from Europe to Asia during that particular day.


WHY SHOULD I ANALYSE THE RELATIVE STRENGTH OF THE YEN?

In an educational article on Relative Strength, the EzTrader team takes a clear example for the US Dollar - but the same thinking applies to the Yen of course: "Let’s assume that for some reason USD becomes the worst performing currency among all G10 currencies. If we look at the EUR/USD and AUD/USD we might see that they both strengthen against the USD, however it will be harder for us to determine which currency is stronger between the two unless we look at EUR/AUD. This process we will have to do for every currency pair so we can understand the relative strength of the currencies (bear in mind that just in the G10 complex we have 45 currency pairs.)"

If you want to know more about correlations, we recommend you to watch Navin Prithyani’s video on Mastering Market Correlations. And you will find more resources on this topic here.


ABOUT THESE RATES

Our rates present high-frequency updated data directly coming from more than 170 big interbank liquidity providers such as ABN Amro, Abbey National Bank, JP Morgan Chase, Zurcher Kantonal Bank, UBS Investment Bank, Westpac and many more. The real time streaming feed displays Open, High, and Low rates as well as the performance in pips and percentage compared to the price close at 00:00 GMT. Click on a pair to get detailed information.

ABOUT THE YEN

The Japanese Yen, despite belonging to the third most important single economy, has a much smaller international presence than the Dollar or the Euro. The Yen is characterized by being a relatively liquid currency 24 hours.

Since much of the Eastern economy moves according to Japan, the Yen is quite sensitive to factors related to Asian stock exchanges. Because of the interest rate differential between this currency and other major currencies that preponderated for several years, it is also sensitive to any change affecting the so-called "Carry Trade", a strategy which involves buying or lending a currency with a high interest rate and selling or borrowing a currency with a low interest rate. Investors were then shifting capital away from Japan in order to earn higher yields.

However, in times of financial crisis when risk tolerance increases, the Yen is not used to fund carry trades and is punished accordingly. When volatility surges to dangerous levels, investors try to mitigate risk and are expected to park their money in the least risky capital markets. That means those in the US and Japan.

Japan is one of the world's largest exporters, which has resulted in a consistent trade surplus. A surplus occurs when a country's exports exceed its imports, therefore an inherent demand for Japanese Yen derives from that surplus situation. Japan is also a large importer and consumer of raw materials such as oil.

Despite the Bank of Japan avoided raising interest rates to prevent capital flows from increasing for a prolonged period, the Yen had a tendency to appreciate. This happened because of trade flows. Remember, a positive balance of trade indicates that capital is entering the economy at a more rapid rate than it is leaving, hence the value of the nation's currency should rise.