USD/JPY – Live and Historical Rates

The USD/JPY pair is a major pair, as both currencies are indeed majors on their own too. The pair is not a commodity one though. The chart featured on this page shows how many JPY one needs to purchase a USD.

The USD

The USD was the currency which started the currently mainstream floating trend back in the 70s. Controlled by the Federal Reserve, the USD is one of the cornerstones of the global economy for several reasons. Besides being the most traded currency in the world as well as the most popular reserve currency, it is closely tied to a number of essential commodities such as gold and oil. An interesting bit of trivia regarding the dollar is that there is more of the currency held outside the US than within the country.

While the USD is an important component of the global economy, its strength stems from internal, US-specific factors too. The US economy is truly massive from every point of view. Its main sectors are energy, manufacturing, finance and commodities.

The JPY

Although Japan’s population is merely 40% of the US’, its economy is massive and its currency, the Yen, is the third most traded currency in the world. It is a major, and it is also a rather popular reserve currency. The authority in control of the JPY is the Bank of Japan, which has practiced a strict monetary policy beginning with the 1990, keeping the interest rates on the JPY very low. As a result, the JPY was turned into the dream vehicle for carry traders.

USD/JPY Analysis

The USD/JPY relationship is an interesting one, in the sense that the JPY is correlated with the 10-year Treasury Note Index. What that essentially means is that in the case of crisis, the JPY counts as a safe-haven, much like gold.