AN INTRODUCTION TO THE USD/ JPY

We all know that several currency pairs are being traded in the foreign exchange market. Of the most traded pair is the USD or US dollar against JPY or Japanese yen.

Therefore,

                  It shows how many Japanese Yen( quote currency) are needed to purchase 1 US Dollar( base currency).

UNDERSTANDING : USD/JPY.

Trading USD/ JPY is also known as the "GOPHER" . The value of these currencies when compared to each other is affected by the interest rate differentiate between the federal Reserve and the bank of Japan.

ACTIVITIES DURING TRADING SESSIONS AROUND THE GLOBE :

Due to the Global time zone differences, there is always a forex market open for business somewhere during the week. On Sunday Nights,(in the U.S ) the Asian and Australian market open first,  facilitating trading. Then Europe, then North America opens. So there are always traders, banks or businesses willing to trade around the clock.

Contrastingly,

                      The USD/ JPY pairing is bit odd in regard this. The UN and the US dollar are highly traded currencies, so this pair typically sees the relatively stable action throughout the day. With a few peeks and troughts in volatility.

TIMES TO AVOID TRADING THE USD/ JPY:

An hourly volatility chart shows how many pips -- hundredths of a Yen, the USD /JPY pair moves each hour of the day. Avoid day trading during those low volatility time because the PIP movement may not be large enough to compensate for the spread and / or commissions you will pay to make the trade.

Therefore,

                 Trading in this pair is subdued between 21:00 GMT and Tokyo open at 00:00 GMT, so that's not ideal for day trading. Alto kio winds down and London opens the pairs is another drop in volatility between 03:00 and 05:00. So basically this is another time to avoid trading.

IDEAL TIMES TO DAY TRADE THE USD/JPY:

If you are able to day trade the USD/JPY between 12:00 and 15:00 GMT. London and New York are both are open for the bulk of this.. Even though Tokyo is not open, this 3 our window typically presents the largest price movement of the day. This means greater profit potential and friends are also typically tightest during this time.

FACTORS AFFECTING THE USD/ JPY :

1) MONETARY POLICY ---

When FED (federal Reserve) and BOJ (bank of Japan) comment or take action in regard to interest rates, quantitative easing, inflation and economic growth forecast, it often causes violent moves in the USD / JPY  exchange rate.

2) ECONOMIC INDICATORS --

Economic indicators are used to lies how will a country's economy is performing, and to predict future economic growth. There are three main categories of economic indicators: Leading, Lagging and coincident indicators.