Although major currency pairs like EUR/USD are traded more frequently in forex markets, developed country currencies are also frequently used in forex trading.
Known as one of the highest trading volumes in today's forex markets, USD/JPY determines its price based on the exchange rate of USD and JPY.
The free market value of these exchange rates is influenced by the global trade activity, political, and financial stability of both the US and Japan.
If the US Federal Reserve (Fed) updates interest rates on the USD, the price of the USD/JPY pair will directly change.
Therefore, forex traders implementing USD/JPY trading strategies are advised to focus on the US and Japan in their fundamental analysis processes. USD/JPY is a suitable currency pair for short-term investors rather than long-term investors.
Japan's policies and political governance in recent years have made the JPY a safe investment instrument in global markets.
Instead of popular and highly liquid currencies like EURO, USD, or GBP, currencies like JPY, which offer unique opportunities, can also be effective solutions for implementing diversification strategies in portfolios.
To trade the USD JPY forex pair, opening an account with one of the online forex brokers holding global forex licenses is a sufficient step.
What is USD/JPY?
For new investors to the forex market, USD/JPY represents the value of 1 USD against 1 JPY, and this value is listed in the forex markets at this price.
Because USD/JPY is one of the most frequently used currency pairs in today's forex markets, its liquidity characteristics mean that the risk factor is low.
Barring an extraordinary dispute or crisis between the US and Japan, it is considered a safe financial instrument.
Currently, at the end of 2025, 1 USD/JPY is listed in the forex markets at 153.08. By looking at this price, forex traders can understand that 1 USD equals 153 JPY and shape their strategies accordingly.
Why is USD/JPY important in forex trading?
The main reason why the USD/JPY forex pair is known as a popular currency pair in the forex markets and is valued by investors is the JPY's stable performance.
Since both the USA and Japan hold significant global economic power, the risk of a sudden drop in the official currencies of these two countries is lower under current conditions.
Forex traders seeking to achieve their return targets by trading USD/JPY should be aware that volatility in this pair is less frequent.
Investors seeking to open a position with this pair should conduct a USD/JPY trend analysis.
However, this should be supported not only by technical analysis prior to USD/JPY trading but also by fundamental analysis encompassing announcements from the countries' central banks.
Key Factors That Affect USD/JPY Movements
In the forex markets, as with other currency pairs, various factors can influence USD/JPY price movements.
The most influential are listed below:
- Correlation between interest rates can be influential. In the US and Japan, the interest rates periodically proposed by local authorities and central banks for their official currencies can directly affect the price of USD/JPY.
- Macroeconomic data from the US and Japan. Trends in data such as inflation and unemployment in both countries directly influence the supply-demand balance of the currencies, thereby influencing USD/JPY price movements.
- Global risk appetite. This is also considered a significant factor by professional forex traders.
Potential Risks of USD/JPY Trading
Every financial instrument offers investors some risk along with potential returns. The USD/JPY, a high-volume market forex market, also carries some risks. Even small price fluctuations can have significant impacts for professional investors.
Therefore, central bank announcements or unexpected global developments should be considered potential risk factors for USD/JPY volatility.
Furthermore, while there may be no larger factor causing USD/JPY price movements, leveraged trading strategies that aim to generate returns through these fluctuations can also be risky.
If investors engage in leveraged transactions while continuing to trade USD/JPY and fail to pay attention to leverage ratios, it can unfortunately become difficult to maintain financial stability.
To combat these risks with sound strategies and access analytical tools that facilitate risk minimization, you can now create your demo forex account in minutes through BlueSuisse.
How to Trade USD/JPY CFDs with Us?
At BlueSuisse, we have years of experience in online forex brokerage, understanding the expectations of traders of all skill levels.
Through our easy-to-use interface, you can explore investment methods like USD/JPY CFDs and confidently experience our advanced infrastructure to achieve your financial goals.
As a common investment model, CFDs can provide investors with higher returns based on the risk-return balance. However, forex traders must accurately monitor the USD and JPY elements within the USD/JPY pair.
If they anticipate a strengthening trend in the USD, they should implement common approaches such as opening long positions.
The potential for return increases when used in conjunction with the right risk management tools and USD/JPY chart analysis tools.
What are the Top USD/JPY Trading Strategies?
The most common strategies used by traders using real-time USD/JPY trading strategies in the forex markets can be listed as follows:
- Scalping
- Day trading
- Swing trading
While these are short-term strategies supported by technical analysis processes, long-term investment strategies can also be implemented using the USD/JPY fundamental analysis approach.
To access these data-based analysis tools integrated with the platform, you can open a forex account at BlueSuisse. You can safely buy and sell all currency pairs with potential returns, including USD/JPY.
When’s the Best Time to Trade USD/JPY?
While it's difficult to provide a definitive and single answer to the USD/JPY best time to trade, it's known that participation from global markets is highest during certain time periods.
The timeframe when European and American markets overlap is generally recommended for this purpose.
However, since one side of the USD/JPY pair is the US and the other is Japanese, it's recommended to choose the hours when these two markets are open and overlap. Liquidity is highest during these hours, and it can be easier to seize market opportunities.
As a professional forex trader, you can open an account with BlueSuisse to create diversified portfolios with various investment instruments, including USD/JPY trading. To learn more, open your live trading account in just a few steps. You can securely monitor and optimize all your investments, even from a mobile phone.