|Member Sentiment Bearish|
Live and Historical EUR/JPY Rates
The chart above compares the euro against the yen of Japan - how many yen will purchase one euro. The euro is a major currency used in much of international trade as is the yen. However, when considered together as EUR/JPY, they form neither a major pair nor a commodities pair.
The euro is the currency for almost all the nations of the European Union (EU). (The United Kingdom and Switzerland are notable holdouts). In addition, the currencies of 23 other nations are pegged to EUR. EUR is the second most traded currency in the world. Such expansive influence makes it hard to believe that EUR has only been in play since 1999. Naturally, the market strength of the euro is strongly impacted by the major industries of the countries that make up the Eurozone. These industries include tourism, manufacturing, and agriculture. Though widely used, questions remain about the staying power of he euro, in part because of weakening economies in some EU nations (Portugal, Italy, Greece and Spain).
The Japanese Yen
The Japanese yen is a widely traded currency in the world market and it ranks as the fifth most popular reserve currency. The Bank of Japan exercises its governing power over the value of JPY and has kept interest rates low in the decades following 1990. This was an attempt to grow the value of JPY. As a result, JPY became more popular with investors as a carry currency, causing the yen's value to drop. When used in a currency pairing, the pip moves from its usual fourth place (.0001) to the second place (.01) after the decimal.
The greatest value flows between EUR/JPY through their common trading partner-the US. As such, the best foundation for evaluating the pair is through their pairing with USD. Both are large currencies and relatively stable in their value. Both countries also have relatively similar industries, with Japan having a greater dependence on manufacturing, and Europe more involved in finance. At times, this pair may be a effective for carry trading. But the best opportunities for profit usually arise from some type of change against the value of USD.
December 15, 2014 at 9:44 AM • Comment
*Key Fundamental Forex Events and Forecasts for the Coming Week* The following table lists the key economic data and other events that are due out during the week of December 15th – December 19th, with release times displayed for...Read More
December 15, 2014 at 9:38 AM • Comment
A rebound Friday, as expected, having held on Thursday on the dip above modest support at 1.2362 to leave a positive bias to the range environment.Read More
December 13, 2014 at 3:36 PM • Comment
*Key Fundamental Forex Events for the Week of December8th through December 12th* The following table lists the key economic data and other events that came out during the week of December8th through December 12th, with release times displayed for...Read More
December 08, 2014 at 12:33 PM • Comment
*EUR/USD Tumbling Feeling Effects of NFP*Read More
December 08, 2014 at 12:15 PM • Comment
EUR Falls Hitting 2-Year Lows Against USDRead More