USDJPY is the main pair for trading the Japanese yen. It is strongly linked to the difference between US and Japanese bond yields: when US yields rise relative to Japan's, USDJPY often rises too. It is also active during the Tokyo session, unlike the European pairs.
What moves it
- US Treasury yields and Fed expectations.
- Bank of Japan decisions and any change in its policy.
- Risk sentiment: in sharp risk-off moves, the yen can strengthen quickly.
- Comments from Japanese officials about the currency.
Sessions
USDJPY moves in the Tokyo session (00:00–06:00 UTC), especially around the Tokyo morning, and again in New York when US data and yields move. That makes it one of the few majors that can be traded in the Asian evening and the European early morning.
Practical tips
- Watch the US 10-year yield on the same chart: divergences can be informative.
- Trend-following works well in long yield-driven trends.
- Be careful near levels where officials have intervened or threatened to intervene in the past: moves can be sudden and large.
- One pip on USDJPY is 0.01; its dollar value depends on the exchange rate, so use the platform calculator.