EUR/JPY Live Charts

The EUR/JPY pair is an interesting one. While it is not a major pair, it does feature two of the world’s largest economies, and as a result is a very stable market. It features the European Union, which of course is a major consumer, and the Japanese economy which of course is a major exporter. Japanese goods flood into the European Union, so this is more or less a barometer of global trade. Because of this, the pair tends to be viewed as a good barometer for economic risk, and tends to move with the risk appetite of traders around the world.

There are several correlations that you can look into, but the easiest one is probably stock market movement. For example, if the S&P 500 is doing fairly well, this pair tends to do the same as the S&P 500 is a good measure of risk appetite. If risk appetite is good and people believe that the world economy is doing fairly well, then it stands to reason that the Europeans would be importing more Japanese goods. Because of that, this pair goes higher. Of course, it works in both directions. So if stock markets are falling, this pair tends to do the same.

EUR/JPY Live Charts:



What is the Average Spread on the EUR/JPY?

The spread is tight, as three pips is typical for most brokers. The liquidity is fine, you’re not going to run into any issues with fact, as both economies are large enough that consistent trading is to be expected. The pair tends to trend very well, which makes it a fun one to trade once you finally get the direction right. While the USD/JPY pair commands most of the attention, this pair tends to move quicker. Because of that, there are more profits to be had when you are correct.

What Major News Announcements Impact the EUR/JPY?

There are a lot of announcements they can influence this market. This is because it is thought of as the risk barometer mentioned above. So ironically enough, the Nonfarm Payroll number out of the United States can be an influence. Other announcements include the typical European ones, such as GDP out of the European Union, GDP out of Germany, employment numbers out of both the European Union and Germany, CPI, and other measures of inflation. Obviously, interest-rate announcements out of both central banks can have an influence on this pair as they can in pre-much all pairs, but typically this pair tends to be influenced by a lot of external factors around the world. There are Japanese announcements they can have a slight influence, such as export numbers, but in the end this is a pair that tends to be used as a way to play global growth more than local issues.

As far as the timing data trade this pair, it seems to do fairly well around the clock. The Europeans of course trade it as a proxy for imports, while North Americans traded as a proxy for risk. In Asia, Japanese corporations and traders play it as a proxy for exports. And as mentioned before, the entire world plays it in response to how stock markets around the world are doing. Remember, stock markets going higher represent corporate profits. Corporate profits are made by importing and exporting. So it is a little bit of a stretch, but the correlation makes sense in the long run.

This pair tends to be a little bit volatile for new players in the Forex market. While it is an excellent pair to trade, it is probably not a good one to start out with just simply because they can move rather quickly and spook new traders. However, it does tend to trend quite nicely over the long-term, so if you are willing to trade from a longer-term perspective, there are a lot of profits to be made in this particular pair.

Leave a Reply