USD/JPY (Dollar Yen): How the Pair Works and What Moves It

• USD
• JPY

What USD/JPY is

USD/JPY is the US dollar priced in Japanese yen. The quote shows how many yen one US dollar buys. The US dollar is the base currency and the yen is the quote currency. Traders often call the pair "dollar yen". It is one of the major forex pairs, so it trades in large volume.

• When the quote rises, the dollar is gaining against the yen.
• When the quote falls, the yen is gaining against the dollar.

Like any forex quote, USD/JPY has two prices. The bid is the price you can sell at. The ask is the price you can buy at. The gap between them is the spread, which is part of your trading cost.

Pip size and pip value

A pip is the standard unit for a price move. Yen pairs place the pip at a different decimal from pairs like EUR/USD, because the yen price is a much larger figure. Many platforms also show an extra digit, called a fractional pip or point. Check the digits in the symbol specification in your platform before you work out risk.

Pip value depends on three things:

• the lot size (a standard lot is the contract size shown in the specification)
• the current USD/JPY price, because the pip value starts out in yen
• your account currency, because yen values have to be converted into it

A USD account turns the yen pip value into dollars at the current rate, so the dollar value of a pip changes as the price moves. Use the calculator below instead of a fixed rule of thumb.

What moves the US dollar side

• Federal Reserve policy. Interest rate decisions and the tone of the statement matter. The dot plot shows where Fed officials expect rates to go. A change in those projections can move the dollar even when rates stay the same.
• US jobs data. The monthly Non-Farm Payrolls (NFP) report, along with wages and the unemployment rate, shapes expectations about Fed policy.
• Inflation (CPI). CPI tells traders whether the Fed is likely to stay tight or ease.
• Treasury yields. USD/JPY is closely linked to US government bond yields, especially compared with Japanese yields.
• Global risk appetite. Risk sentiment affects the dollar, but in this pair it often acts through the yen side.

What moves the Japanese yen side

• Bank of Japan policy. BoJ rate decisions and its stance on the yield curve, meaning how much it controls or lets go of Japanese government bond yields, are central to the yen. Any sign of a policy change can cause sharp moves.
• US–Japan yield gap. The difference between US and Japanese yields is a key driver. A wider gap tends to make holding dollars more attractive than holding yen. A narrower gap tends to work the other way. Carry trades, where traders borrow in a low-yielding currency to hold a higher-yielding one, add to this effect.
• Safe-haven demand. In periods of market stress the yen is often bought as a safe haven. This can push USD/JPY down quickly.
• Intervention risk. Japan's Ministry of Finance (MoF) can order intervention in the currency market, which the BoJ carries out. Statements from officials, and actual intervention, can cause large and sudden moves.

Usable USD/JPY analysis combines these factors with an economic calendar. Read more in Fundamental analysis and Technical analysis.

Liquidity by session and spread behaviour

• Tokyo session. The yen's home session. Japanese data and BoJ news come out here.
• London session. Liquidity rises as European banks join.
• New York session. US data releases (NFP, CPI, Fed decisions) arrive here. The London–New York overlap is usually the most liquid part of the day.

Spreads are usually tightest when liquidity is deep. They often widen around the daily rollover, in thin holiday markets and around high-impact news. Price can also gap between the weekend close and the open.

USD/JPY conditions at Exness

The table lists general conditions Exness publishes for its accounts. They are not a USD/JPY-specific contract sheet. Check the USD/JPY specification in the platform for contract size, digits, spread and swap at the time you trade.

Swaps. Exness lists Pakistan among the countries where Algeria, Azerbaijan, Bahrain, Bangladesh, Brunei, Chad, Comoros, Côte d'Ivoire, Djibouti, Egypt, Indonesia, Iraq, Jordan, Kazakhstan, Kyrgyzstan, Kuwait, Lebanon, Libya, Maldives, Mauritania, Morocco, Niger, Oman, Pakistan, Qatar, Saudi Arabia, Senegal, Tajikistan, Tunisia, Turkiye, Turkmenistan, United Arab Emirates, Uzbekistan clients get swap-free status automatically. Confirm your status in the Personal Area. See Swap fees and Account types.

Use the margin calculator to see how much margin a position needs at a given leverage:

Risk and the legal position in Pakistan

Leveraged forex and CFD trading can lose money fast. A sudden yen move around BoJ news or an intervention can close positions before you can react. High leverage makes losses larger as well as gains.

On this point, per the SBP, the purchase of offshore forex/margin/CFD products by Pakistani residents violates section 4(1) of FERA 1947. Also, per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse. Read Law and regulators and Risk management before you trade.

Frequent questions

What does the USD/JPY quote mean?

It shows how many Japanese yen one US dollar buys. A rising quote means the dollar is gaining against the yen.

Why does the pip look different on USD/JPY?

Yen pairs place the pip at a different decimal because the yen price is a larger figure. Check the digits in the platform specification.

Is pip value fixed on USD/JPY?

No. It starts out in yen, so in a USD account it changes with the price. Use the pip calculator above.

When is USD/JPY most liquid?

Usually during the London–New York overlap. Tokyo hours carry Japanese news.

Does Exness offer swap-free USD/JPY for Pakistan?

Exness lists Pakistan for automatic swap-free status. Check your account status in the Personal Area.

Can I practise first?

Yes. A demo account is available. See Demo account.