USD/JPY is heavily influenced by the gap between US and Japanese interest rates. When US yields rise relative to Japan, the pair tends to climb, and the yen is a classic funding currency in "carry trades".
Japanese authorities have intervened in the currency market before to slow sharp yen weakness, so sudden, violent reversals are a real risk. Stops are not optional here.
Prices are indicative and for information only. Your broker's prices may differ.
USD/JPY often tracks the US 10-year yield closely.
Changes to yield-curve control or rate guidance can move the pair sharply.
Verbal warnings or actual intervention from Japanese authorities can trigger fast, large reversals.
The yen often strengthens in risk-off markets as carry trades unwind.
The Tokyo session and the New York open are the most relevant; Asian-hour BoJ headlines can cause gaps.
For yen pairs a pip is 0.01, the second decimal place. A move from 150.00 to 150.50 is 50 pips.
Borrowing in low-yielding yen to buy higher-yielding assets. When risk appetite drops or the yen strengthens, the trade can unwind quickly and push USD/JPY lower.
It can produce sudden multi-big-figure reversals against a trend. Always use a stop-loss and avoid oversized positions on yen pairs.
Forex is open 24 hours, but it is not tradable 24 hours. Learn how the Sydney, Tokyo, London and New York sessions behave, where volatility and liquidity concentrate, and when each major pair is worth your attention.
Before indicators, before patterns, there is structure. Learn how swing highs and lows define a trend, how to spot a genuine break of structure, and why most retail traders get the trend wrong.
A strategy with a 70% win rate can still destroy an account. Learn fixed-fractional sizing, the exact lot-size formula, how drawdowns compound, and the rules we never break.
