US Dollar vs Japanese yen
US dollar Japanese yen is the main currency pair, basic for Asian assets, takes up 16% of the volume of all Forex operations. The forecast of US dollar Japanese yen Forex currency pair experiences significant pressure, besides US dollar, from Euro, Chinese and American stock markets, and prices for energy resources.
US dollar and Japanese yen rate responds speculatively to political and economic events in the Asian region, especially in China and Australia. USD/JPY technical and fundamental forecast requires assessment of many factors of the Japanese and American economy, in particular, recently introduced negative discount rates. During the Asian trading session, Forex rate USD/JPY online chart acts as the leading indicator for the price situation in AUD/USD, AUD/JPY, NZD/USD и NZD/JPY pairs. In the modern conditions, US dollar Japanese yen Forex chart shows strong fundamental correlation with the Chinese yuan exchange rate.
The USD/JPY pair forecast is strongly influenced by the following fundamental factors:
- main economic indicators of the USA, Japan, China (discount rate, GDP, inflation, unemployment level, CPI, PMI, etc.);
- statements made by the officials and financial structures of those countries;
- statements made by the Bank of Japan, Japan's Ministry of Finance, Japanese yen currency interventions;
- movement of raw material prices that influence USD/JPY forecast, as well as that of Asian stock indexes (Hang Seng, KOSPI, Nikkei 225, SET50, Composite, TOPIX).
It is considered as a highly liquid asset, the main trading volume is achieved by the exchange operation of the Bank of Japan, large raw materials contracts, short-term options, and other hedging operations.