Japanese Yen (JPY)
Central Bank: Bank of Japan (BoJ)
Current Interest Rate: http://www.boj.or.jp/en/index.htm

Technically Complex, Fundamentally Simple
Established in 1882, the Bank of Japan serves as the central bank to the world's second-largest economy. It controls monetary policy as well as the money market, currency issuance and data/economic analysis. The primary Monetary Policy Board aims to work toward economic stability, constantly sharing its views with the incumbent administration, while at the same time working toward its own self-government and transparency. Meeting between 12 and 14 times a year, the bank's governor leads a team of nine policy members, which includes two appointed deputy governors.

The Japanese yen (JPY) trades heavily as a carry trade component. Offering a low interest rate, the currency is paired against higher-yielding currencies, most often the New Zealand and Australian dollars and the British pound. As a result, the underlying can be very volatile, at times forcing traders to take technical perspectives on a longer-term basis. Average daily ranges are in the region of 30-40 pips, while extremes can be as high as 150 pips. The yen is most often traded between the crossover of London and U.S. hours (8am - 12pm EST). (Read more about forex carry trades in Currency Carry Trades Deliver.)



British Pound

Related Articles
  1. Trading

    Top 8 Most Tradable Currencies

    Currencies can provide diversification for a portfolio that's in a rut. Find out which ones you need to know.
  2. Investing

    From Mrs. Watanabe To Abenomics: The Yen's Wild Ride

    Relatively recent upstarts like the euro and the yuan may hog the currency headlines these days, but for sheer drama and gut-wrenching volatility, no currency can match the venerable Japanese ...
  3. Trading

    What Forex Traders Need To Know About The Yen

    The Japanese Yen possesses some unique qualities that traders should know before jumping in.
  4. Trading

    Currency Carry Trades 101

    This strategy can provide returns even if the currency pair doesn't move a cent.
  5. Investing

    FXY: Should You Short the Yen?

    Discover several reasons why investors may profit from short selling the Japanese yen against the U.S. dollar.
  6. Investing

    The Credit Crisis And The Carry Trade

    When boom times turned to bust, these trades proved devastating for traders and the broader markets.
  7. Investing

    Yen: The Safest Play Amid Brexit and Fed Rate Volatility (JPY)

    Why the Japanese yen has emerged as the safest haven for currency traders in the current economic situation.
  8. Investing

    Get To Know The Major Central Banks

    The policies of these banks affect the currency market like nothing else. See what makes them tick.
  9. Trading

    4 Of The Most Popular Traded Currencies

    Every day, trillions of dollars trade in the forex market. Here are a few of the most popular currencies, and some characteristics for each.
  10. Trading

    Top 6 Most Tradable Currencies

    Here are six currencies that can diversify your portfolio.
Trading Center