Also known as trading the “gopher” the USDJPY pair is one of the most traded pairs in the world. The value of these currencies when compared to each other is affected by the interest rate differential between the Federal Reserve and the Bank of Japan.
- USD/JPY is the ticker used to denote the currency exchange rate for the U.S. dollar and Japanese yen.
- The USD/JPY exchange rate is one of the most liquid and traded currency pairs in the world.
- USD/JPY tends to have a positive correlation with USD/CHF because, aside from the fact that they both use the U.S. dollar as the base currency, the Swiss franc is the other currency that has a safe-haven status with investors.