USDJPY is among the most actively traded forex pairs in the world. This major pairing consists of the US dollar (USD) as the base currency and the Japanese Yen (JPY) as the quote currency. Low volatility and massive trading volume are why USDJPY is one of the most popular forex pairs to trade.

What is USDJPY?

Comparing the Japanese Yen and the US Dollar prices is one of the fundamentals of the global economy. The two economies are some of the greatest in the world. That's why most marketers try having some call positions in this forex index to ensure the most impressive profits for their clients. After World War II, the global economy had two engines: the US economy and the Japanese one. Today, the Japanese Central Bank and the American Central Bank (FED) have the same financial policies for both currencies. That's why many investors like to carry trade to the Japanese economy and take advantage of the historically low interest rates in this economy.

The USDJPY index is one of the most robust ones investors will find in the forex market. It depicts the need for the Japanese Yen in the US economy. Most American brands have direct investments in Japan. That creates a need for the Japanese Yen and gives more chances to need this currency for traders living in the US. The same applies to the US Dollar, the global depository currency, and Japanese people need it to buy crude oil and other vital imports from the US. This tight relationship is essential for understanding how to invest in USDJPY.

How does the USDJPY market work?

The currency pair works by trading on various platforms, like SimpleFX. First, the trader needs to open an account. SimpleFX provides a demo account where investors can learn how to trade USDJPY. It gives access to the simulation of real-time market conditions without financial risks. The USDJPY works daily when both markets are open. However, investors can place a call or put options at any time of the day and expect them to happen the next day. The USDJPY works with the demand and supply of the USD and JPY in the world markets. If investors want to be in favor of the Japanese economy, they need to invest in the index when it's low.

USDJPY price history

2018

During 2018, the Japanese economy was more robust than ever before. The index was close to the historical highs, that is, the price of 105 Japanese Yen for 1 US Dollar. It showed the great relative strength of the Japanese Yen during that year when new factories were built in Japan after the Fukushima accident, and there was a demand for more Japanese goods and services.

2019

Things in the USDJPY forex market were stable during 2019. That was depicted on the index price, which barely increased to 109 Japanese Yen for 1 US Dollar. The American economy kept thriving and outburst the Japanese economy, only that the rate was lower than before.

2020

Japan was one of the countries that had a great hygienic impact in 2020. However, the index price went up to 106 Japanese Yen for 1 US Dollar, showing that the American economy also had the same issues during that year.

2021

2021 was the year when the equivalency between the two currencies went to 118 Japanese Yen for 1 US Dollar. That happened due to the fear of the American economy getting into recession. The Japanese Yen showed its relative strength and became one of the year's best currencies.

2022

Finally, 2022 was the year when the European war started, and the US Dollar cost almost 157 Japanese Yen in the free market. It was the year that people needed to learn more about the capacity of the US economy to remove inflation. The rate started to go down during the first three months of 2023, but this does not mean that 2022 was not a record year for the index with many profit stories.

Current USDJPY price

The current USDJPY price is subject to fluctuation due to the volatility of the forex market. Investors can check it on the chart or the SimpleFX Webtrader platform.

Is USDJPY a good investment?

Whether USDJPY is a good investment depends on factors such as interest rates, monetary policies, geopolitical events, etc. The answer depends on analyzing these factors and the potential returns on investment. If the factors are also stable and there are more chances of return, this currency pair brings more interest from investors eager to learn how to invest in forex worldwide.

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