Currency Japanese Yen on Forex.

This currency is one of the most popular in Asia; it is also in deserved demand among buyers of goods produced in Japan, and this is by no means a small share of world trade turnover.

These are mainly payments for high-tech goods, such as computers, household appliances, and cars.

The yen is the currency of Japan, it is freely quoted on the world foreign exchange market and has high liquidity. Its exchange rate is quite unstable and is often regulated by the issuer state, which does not prevent it from taking a worthy place among the foreign exchange reserves of many Central banks. The share of the yen in gold and foreign exchange reserves is at least 4%

Over the past decades, there has been a tendency towards the strengthening of this currency in relation to other freely convertible currencies of the world, which negatively affects the economy of the land of the rising sun.

The Bank of Japan quite often resorts to foreign exchange interventions in the Forex market, trying to artificially lower its exchange rate in order to reduce goods produced in Japan in relation to competitors.

The currency of Japan is one of the most inexpensive freely convertible currencies in the world; for example, for an American dollar on average they give about 80 Japanese yen, sometimes the rate drops to lower levels.

When trading Forex, this currency has its own characteristics, which we will talk about in the second part of this article.

Trading using the Japanese Yen on Forex.

Since this currency has a very low value, to facilitate calculations its quotation in relation to other currencies has only two decimal places, that is, one point in this case will be considered 0.01.

This instrument acts as a quoted currency , so when trading you should take into account the fact that positive news on the yen will lead to a reduction in the price of currency pairs involving it, and vice versa, negative news will cause an upward trend.

The main instruments involving this currency are:

EUR/JPY – euro/yen
USD/JPY – US dollar/yen
GBR/JPY – British pound/yen
AUD/JPY – Australian dollar/yen

This instrument is highly dynamic, which is especially noticeable when trading using the GBR/JPY currency pair; sometimes its volatility reaches more than 200 points during one trading session.

The best time to trade the yen is the European session , at which time you will be insured against sharp fluctuations in the rate that may be caused by direct interventions by the Bank of Japan.

When using a news trading strategy, the main events that affect the exchange rate of a given currency are reports of the introduction of new duties or fees on the import of Japanese goods into other countries, an increase in energy prices, and events within the country itself, both economic and political in nature.