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US DOLLAR / JAPANESE YEN Trading
The USD/JPY exchange rate is one of the most liquid and traded currency pairs in the world and tends to have a positive correlation with USD/CHF. The USD/JPY is the abbreviation used to denote the currency exchange rate for the US dollar and Japanese yen. A trader can choose to trade USD/JPY with either a forex contract or they can trade a contract for difference (CFD) on a specific pair and speculate on the price difference.
History of USD JPY Trading
The USD dates back to 1792, when the United States Congress created the US dollar as the official country’s currency. It serves as legal tender in many countries, and it is the most widely used currency in the world both in circulation and reserve. The US dollar form the majors as it pairs with all main currencies in the foreign exchange market (forex). The Japanese yen is the 3rd most traded currency in the world and the 4th reserve currency after the pound sterling, euro and the US dollar. The yen was officially adopted in 1871 and as such has a complex and rich history compared to other currencies relatively newer around the world. The value of the Japanese yen has considerably grown due to the strong Japanese industrial complex with a thriving industry consisting of technological developments, agricultural innovation, and a wide range of exportable products.
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USD/JPY Trading FAQs
When Is the Best Time to Trade USD/JPY?
When Is the Best Time to Trade USD/JPY?
While forex pairs can theoretically be traded 24 hours a day, there are optimum times to trade the USD/JPY whenever the currency pair is more volatile. From 08:00 to 17:00 GMT., the USD/JPY will continue to be the most acceptable time to day trade, regardless of whether daily volatility increases or decreases.
What affects USD/JPY investing?
What affects USD/JPY investing?
Many factors can affect the USD/JPY market sentiment and spot rates, such as central banks policies, the price of commodities in each country, exports of both countries, economic growth, and political stability.
Why Is the USD/JPY Currency Pair Significant to Traders?
Why Is the USD/JPY Currency
Pair Significant to Traders?
The USD/JPY currency pair is one of the most traded pairs in the foreign exchange market. It represents a significant quantity of daily trading and it is popular amongst veteran traders and newcomers alike.
Where Can I Find a Trusted Forex Broker to Trade USD/JPY?
Where Can I Find a Trusted
Forex Broker to Trade USD/JPY?
As you may already know, trading via CFDs (contracts for difference) is one of the most popular approaches when dealing with currencies such as USD and JPY. While there are numerous Forex brokers out there. Try to find one that suits your needs. Such as FP Markets a fully regulated broker, offers all types of platforms and accounts, to suit every need.