USD/JPY

📜 History

The yen became Japan's official currency unit in 1871, during the Meiji-era reforms. From 1949 to 1971 the Bretton Woods system fixed the rate at 360 yen per dollar. After the US ended dollar convertibility in August 1971, the rate was reset, and Japan let the yen float in 1973. The Plaza Accord of September 1985 pushed the dollar down against major currencies, and the yen rose sharply. Japan's asset bubble burst in the early 1990s, starting a long period of weak growth and low inflation. Abenomics and Bank of Japan easing from 2013 pushed the yen weaker, and Japan's Ministry of Finance has intervened in the market several times, including in 1998, 2011 and 2022.

⚙️ What moves the price

• →US Federal Reserve rate decisions and US Treasury yields: higher US yields usually support the dollar against the yen.
• →Bank of Japan policy: changes to easing or yield curve control can move the yen sharply.
• →Interest rate gap and carry trades: when investors borrow yen to buy higher-yielding assets, a sudden unwind can lift the yen fast.
• →Japan Ministry of Finance intervention: official yen buying can cause quick, large drops in USD/JPY.
• →Risk sentiment and oil prices: yen demand rises in crises, and Japan imports most of its energy, so high oil often weakens the yen.

Character

• •Long, smooth trends driven by US bond yields.
• •Active in Tokyo and again in New York.
• •Risk of sudden drops when Japan's Ministry of Finance intervenes to support the yen.

When to trade

• ✅Tokyo session and the New York open.
• ✅Trend pullbacks on M15 in the direction of the daily trend.

When not to trade

• ⛔US CPI and NFP, Fed and Bank of Japan decisions.
• ⛔Levels where Japanese officials have warned about intervention.

Our verified setups

Latest closed signals

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Simulation: $10,000 deposit, $100 risk per trade. Pips — price movement; $ — result at fixed risk.