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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 the second week of September, the yen finally strengthened enough to force USD/JPY below 108. As a safe haven, the yen had benefitted in September from North Korean provocation and in the wake of Hurricane Irma.

Forecasts:

In September, Bank of America Merrill Lynch said that they saw USD/JPY trading down to 106.50 in the short-term before rallying into year-end.

Upon USD/JPY’s break of 108, Credit Suisse and Nomura Holdings also predicted a fall to 105 (105.40 for Credit Suisse).

Societe Generale said their bias was “to be bearish the yen [yen cross rates to rise] against the AUD, CAD and EUR on a 3-to-12-month view.”

Scotiabank saw the yen falling with its USD/JPY forecast of 110 at year-end. The bank did, however, expect the yen to appreciate against the euro, with a year-end EUR/JPY forecast of 124.30 (at 130.45 on the day of the bank’s prediction, September 4th).

Another noteworthy yen exchange rate was NZD/JPY, which fell in the first week of September to a 3-month low (a yen high) of 78.24.

Should geopolitical tensions ease, investors will go back to taking their yen cues from the Bank of Japan. As recently as July, the yen had been struggling in light of the central bank's continued commitment to an extremely stimulative monetary policy – a policy forced by the bank’s inability to produce meaningful inflation in the economy.


Japanese Yen - News & Market Updates

New Zealand Dollar Jumps as New Election Poll Suggests National Party Victory

The New Zealand dollar jumped by three-quarters of a percent against many of the majors on Wednesday evening after the latest election poll showed a clear swing in public opinion back towards the incumbent National Party. New Zealand’s general election will take place in three days’ time, on Saturday September 23rd. NZD/USD is now seen... View article >
Currency:
Posted on 20 September 2017 | 7:59 am GMT
Author: Joel Wright

ABM Amro Has “Strong Conviction” on Future Dollar Weakness; Predicts 12% Rise in AUD and NZD

New forecasts from Dutch bank ABN Amro see continued weakness in the US dollar heading into and throughout 2018. “We have a strong conviction that the US dollar has entered a multi-year downtrend,” said ABN’s Georgette Boele. The dollar will be hardest hit against “growth sensitive and commodity currencies,” according to the bank, which include... View article >
Posted on 18 September 2017 | 4:47 am GMT
Author: Joel Wright

Sterling Soars, Yen the Casualty at the End of Eventful Week

The British pound rose on Friday to its highest level against the dollar since the UK’s historic ‘Brexit’ vote in June of last year. By lunchtime in London, the pound was buying $1.3616, capping a brilliant fortnight in which it has risen from rates close to $1.29. On minor profit taking, the currency settled back... View article >
Posted on 16 September 2017 | 5:50 am GMT
Author: Joel Wright

Missile Test Whipsaws Yen and Swiss Central Bank Speaks on Franc

Investors were rattled on Friday morning following the news that North Korea had launched another missile over northern Japan. After traversing the island of Hokkaido, the missile is said to have travelled a further 1200 miles before landing in the Pacific Ocean. The North Korean regime preceded its test with statements that it would “sink”... View article >
Currency:
Posted on 15 September 2017 | 4:55 am GMT
Author: Joel Wright

Singapore Dollar Trades Cautiously but Still Reaches 6-Week High Versus Yen

The Singapore dollar has begun the week cautiously. Against the US dollar, having risen on Friday to a one-year high of 0.7493, the currency of Asia’s ‘Lion City’ conceded some ground on Monday and Tuesday, with SGD/USD falling back below 0.745. A retreat in the pair was likely given last week’s approach to major technical... View article >
Currency:
Posted on 13 September 2017 | 6:02 am GMT
Author: Joel Wright

USD/JPY Finally Breaks 108 on Hurricane Irma Concerns

The trading week ended as it began, with investors selling the dollar and seeking the safety of the yen and Swiss franc. This time, rather than North Korea, investors have been unnerved by Hurricane Irma – a potentially deadly storm, likely to reach Florida on Saturday evening, that is expected to cause significant economic damage.... View article >
Currency:
Posted on 9 September 2017 | 4:52 am GMT
Author: Joel Wright

Asian Currencies Plunge Against CAD After Bank of Canada’s Surprise Rate Hike

To the surprise of many, the Bank of Canada raised interest rates on Wednesday to 1.0%, from 0.75%, which sent currencies in the Asia-Pacific region tumbling against the Canadian dollar. The Bank of Canada had been expected to raise the cost of borrowing again this year, following a quarter-point hike in July, but most analysts... View article >
Posted on 7 September 2017 | 5:14 am GMT
Author: Joel Wright

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