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Japanese Yen (JPY) - BER Currency Guide

In this currency guide we look at :


  1. JPY General Info
  2. JPY Market View
  3. JPY News & Updates
  4. JPY Cross Rates

Japanese Yen General Info

The three letter currency code for the Japanese Yen is JPY and the symbol is ¥. It is the domestic currency in Japan.

According to the Bank for International Settlements, in 2016, trading in the Japanese yen (ISO: JPY) contributed to 22% of total foreign exchange market turnover, making the yen the world’s third most traded currency.

Like government bonds and gold, the Japanese yen is considered a safe haven asset – it is the premier safe haven of the currency world. This means that the yen is likely to increase in value against other currencies during periods of economic uncertainty or when global geopolitical risk is elevated, or during bouts of high market volatility.

Since 1995, against the US dollar, the yen’s lowest valuation came in August 1998 when USD/JPY reached 147.67 (¥100 cost a little less than $0.68). Its post-1995 high came in October 2011 when USD/JPY traded at just 75.56 (¥100 cost $1.32).

The Japanese yen is a crucial part of the ‘carry trade’ – a popular strategy among foreign exchange traders in which they borrow in a currency with a low interest rate and use those funds to invest in currencies paying a higher rate. In recent decades, the most popular way to fund the carry trade has been to borrow (sell) yen due to Japan’s consistently low interest rates (since 1996 Japanese rates have averaged less than 0.5%).



JPY - Market View

In August, amid growing tensions between the US and North Korea, the Japanese yen was strong, rallying to multi-week highs against many currencies. The currency was, of course, benefitting from its status as a safe haven.

Against the dollar, the yen strengthened by August 11th to an eight-week high of ¥108.9.

Against the Australian dollar and Canadian dollar, the yen rose to six-week highs of ¥85.48 and ¥85.52 respectively.

Against the Singapore dollar, the yen rose to a seven-week high of ¥79.91.

In August, the yen remained weak against the euro, against which it was down on the year by 4% at the time of this report.

Prior to August, the yen had struggled in light of the Bank of Japan’s continued commitment to an extremely stimulative monetary policy, forced by an inability to produce meaningful inflation in the economy.

Valuation: After consideration of Japan’s current account balance, external balance sheet, capital flows and reserves, the IMF said in late July that the current valuation of the yen was consistent with fundamentals. At the time of the IMF report ¥100 was buying $0.905 (USD/JPY 110.51).

Future: In the coming months, analysts will be hoping to hear of discussions by the BoJ about an exit from its massive stimulus program. Such discussions would likely send the yen significantly higher, as would negative geopolitical developments.


Japanese Yen - News & Market Updates

Yen Falls as Risk Appetite Returns

The yen fell by nearly a percent yesterday against the US dollar – its biggest one-day fall in six weeks – as investors regained their appetite for risk amid an easing of the tense situation surrounding North Korea. The yen, which has long been considered the FX world’s premier safe haven, typically falls in value... View article >
Posted on 16 August 2017 | 5:20 am GMT
Author: Joel Wright

Little Chance of Another US Rate Hike This Year as CPI Disappoints Again

The implied probability of a further hike in US interest rates this year declined on Friday to 35%, down from probabilities above 40% one day earlier. This fairly drastic adjustment in market expectations for US rates occurred following inflation data which, remarkably, came in below market expectations for the fifth consecutive month. The US dollar... View article >
Currency:
Posted on 12 August 2017 | 11:11 am GMT
Author: Joel Wright

Yen at 8-Week High as Investors Flee to Safe Havens and Singapore’s Economy Outperforms

Amid growing tensions between the US and North Korea, investors fled on Thursday to the safety of the Japanese yen, gold and Treasuries. Earlier this week, US president Donald Trump had promised to lay “fire and fury” on North Korea should any attempt be made by the rogue nation to harm the US. Not one... View article >
Currency:
Posted on 11 August 2017 | 6:12 am GMT
Author: Joel Wright

“FIRE and Fury”

A petulant President in the White House.  A psychotic Supreme Leader in North Korea.  What could go wrong? In a war of words to rival any day-care drama, Trump got his yellow-dyed hackles up after endless rants by the NK nutbar. The US President, displaying all the tact and diplomacy of a spoiled two-year old, threatened... View article >
Posted on 9 August 2017 | 12:24 pm GMT
Author: Agility Forex

Strength in Thai Baht Only Temporary, Says Finance Minister

Within the past fortnight, Thailand’s baht has overtaken the Korean won to become Asia’s best performing currency. The baht’s outperformance will, however, be short-lived according to Thailand’s finance minister Apisak Tantivorawong. Even after some small measure of stability in the dollar in recent days, the baht remains up almost 8% against the world’s reserve currency... View article >
Currency:
Posted on 9 August 2017 | 6:43 am GMT
Author: Joel Wright

Dog Days of Summer Baying at the Moon

It’s not the hounds of Bakersfield you hear, it is FX traders howling at the static prices on their screens. If Monday’s trading action was in slow-motion, Tuesday’s was stop-motion. In Asia on Monday, NZDUSD was under pressure after Q3 inflation expectations fell and it remained soft today.  The RBNZ policy meeting is Thursday. AUDUSD... View article >
Posted on 8 August 2017 | 2:49 pm GMT
Author: Agility Forex

Dollar Has Best Day Since January After Solid Jobs Report

The US dollar ended the week on a high, posting its best day in more than six months following Friday’s solid US employment data. The US Dollar Index (DXY) surged from levels in the high 92s to the high 93s after the US Bureau of Labor Statistics said that non-farm payrolls had risen by 209,000... View article >
Posted on 5 August 2017 | 7:50 am GMT
Author: Joel Wright

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