USD/JPY (US dollar / Japanese yen) — Live Rate, Chart & Analysis
USD/JPY is the second most traded currency pair after EUR/USD, accounting for roughly 13% of daily FX turnover. It expresses how many Japanese yen one US dollar will buy. The pair is the cleanest single instrument for trading the spread bet…
About USD/JPY
USD/JPY is the second most traded currency pair after EUR/USD, accounting for roughly 13% of daily FX turnover. It expresses how many Japanese yen one US dollar will buy. The pair is the cleanest single instrument for trading the spread between US Treasury yields and Japanese government bond yields, because the Bank of Japan held policy rates at or near zero from the mid-1990s to 2024. As a result, USD/JPY is highly correlated with US 10-year yields and is a primary expression of the global "carry trade". Liquidity is strongest in the Tokyo and New York sessions; the London session adds a third active window. The yen historically strengthens during risk-off episodes as Japanese investors repatriate capital, making USD/JPY a useful sentiment gauge alongside the price level. Typical daily range is 60-90 pips, expanding around BoJ meetings, MoF intervention warnings, and US payrolls. NewFXT presents USD/JPY with live quotes, BoJ and Fed policy context, and AI-generated commentary.
USD/JPY FAQ
What is USD/JPY?
USD/JPY is the exchange rate of the US dollar against the Japanese yen. It is the second most traded FX pair, behind only EUR/USD, and is the primary instrument for expressing the US-Japan interest rate differential.
Why is USD/JPY linked to US Treasury yields?
Because the Bank of Japan held rates near zero for nearly three decades, the US-Japan yield spread is dominated by movements in US yields. USD/JPY therefore tends to track the US 10-year Treasury yield closely.
When does Japan intervene in USD/JPY?
Japan's Ministry of Finance has historically intervened to weaken the yen when USD/JPY threatens to rise above multi-decade highs. Verbal warnings from MoF officials usually precede direct intervention by days or weeks.
When is USD/JPY most active?
The Tokyo session (00:00 to 08:00 UTC) and the New York session (13:00 to 22:00 UTC) are the most liquid. BoJ decisions usually post in the Tokyo morning; Fed-driven moves arrive at 18:00-19:00 UTC.