GUIDE TO TRADING EUR/JPY (highest traded non USD pair in forex)
Why is EUR/JPY important to traders?
One of the popular pairings across the worldwide foreign exchange market is EUR/JPY. It represents around 4% of all daily transactions. Investors and traders alike look to the euro/Japanese yen currency pair because high levels of volatility can provide plenty of trading opportunities. There are major factors that can influence their rates, and how and why people choose to trade EUR/JPY using CFDs (contracts for difference) on forex.
Fundamental Aspects of EUR/JPY pair:
Major factors throughout both Europe and Japan affect the euro yen exchange rate. As with most regions, factors that can have knock-on effects are usually fairly broad and similar in nature. Japan, however, has some interesting key points that differ from the norm, which we'll explain in more detail.
Like most modern currencies, the major factors which influence the movement of euro prices are mainly economic, political, and financial. Many of the ways in which the euro is affected will already be familiar to people who have a basic knowledge of how traders try to determine which way prices of currencies like the euro will move. Monthly reports which are released by the European Central Bank (ECB) form the backbone of many traders' decisions regarding the euro. Investors and traders are quick to scour these details as soon as they are released in an effort to find out more about what direction the euro could be heading. Economically, news releases surrounding employment can play a huge part in the oscillation of euro rates. These figures are freely available and provide a valuable insight into the health of Europe's economy and direction in which euro prices could go.
The economy of Japan has a few more factors in play that can affect the rate of their currency. General health of the economy will play a massive part, with the high rate of import and export trading in Japan helping to boost or weigh on prices, depending on the state of the industry. One of the influencing factors that you're less likely to find in other countries is, surprisingly, the rate of natural disasters which occur in the region. Due to the small size of the country, events like natural disasters can affect the currency’s value immensely. The government of Japan often utilizes economic initiatives in an effort to bolster the economy. As a result, many traders and investors pay extremely close attention to interest rates and government interventions from financial institutions such as the Bank of Japan (BOJ). Another regular factor that traders watch out for is the details within data reports such as the Tankan Report, the Tokyo Area CPI and the aforementioned interest rate decisions of the BOJ. These help to determine various financial paths that yen may follow.
How & When To Trade EUR/JPY: Best is when currency is most volatile. The EUR/JPY is generally busy between 07:30 and 15:30 (GMT). Convert To Your Time. Tokyo and London overlap two -three hours is great when there our two major sessions trading at one time. Yen is currency of Japan, and third most widely traded currency in world after US Dollar and the Euro. It is possible to make a significant profit within just a short time when trading EUR/JPY.
One of the popular pairings across the worldwide foreign exchange market is EUR/JPY. It represents around 4% of all daily transactions. Investors and traders alike look to the euro/Japanese yen currency pair because high levels of volatility can provide plenty of trading opportunities. There are major factors that can influence their rates, and how and why people choose to trade EUR/JPY using CFDs (contracts for difference) on forex.
Fundamental Aspects of EUR/JPY pair:
Major factors throughout both Europe and Japan affect the euro yen exchange rate. As with most regions, factors that can have knock-on effects are usually fairly broad and similar in nature. Japan, however, has some interesting key points that differ from the norm, which we'll explain in more detail.
Like most modern currencies, the major factors which influence the movement of euro prices are mainly economic, political, and financial. Many of the ways in which the euro is affected will already be familiar to people who have a basic knowledge of how traders try to determine which way prices of currencies like the euro will move. Monthly reports which are released by the European Central Bank (ECB) form the backbone of many traders' decisions regarding the euro. Investors and traders are quick to scour these details as soon as they are released in an effort to find out more about what direction the euro could be heading. Economically, news releases surrounding employment can play a huge part in the oscillation of euro rates. These figures are freely available and provide a valuable insight into the health of Europe's economy and direction in which euro prices could go.
The economy of Japan has a few more factors in play that can affect the rate of their currency. General health of the economy will play a massive part, with the high rate of import and export trading in Japan helping to boost or weigh on prices, depending on the state of the industry. One of the influencing factors that you're less likely to find in other countries is, surprisingly, the rate of natural disasters which occur in the region. Due to the small size of the country, events like natural disasters can affect the currency’s value immensely. The government of Japan often utilizes economic initiatives in an effort to bolster the economy. As a result, many traders and investors pay extremely close attention to interest rates and government interventions from financial institutions such as the Bank of Japan (BOJ). Another regular factor that traders watch out for is the details within data reports such as the Tankan Report, the Tokyo Area CPI and the aforementioned interest rate decisions of the BOJ. These help to determine various financial paths that yen may follow.
How & When To Trade EUR/JPY: Best is when currency is most volatile. The EUR/JPY is generally busy between 07:30 and 15:30 (GMT). Convert To Your Time. Tokyo and London overlap two -three hours is great when there our two major sessions trading at one time. Yen is currency of Japan, and third most widely traded currency in world after US Dollar and the Euro. It is possible to make a significant profit within just a short time when trading EUR/JPY.