Backtest USD/JPY for free
USD/JPY is a favourite for trend traders. It follows US interest rates closely and reacts to risk sentiment, because the yen is often a safe-haven and funding currency.
USD/JPY at a glance
- Pip: 0.01
- Pip value (1 standard lot): about 1,000 yen, roughly $6 to $7
- Busiest: Tokyo session and New York session
- Moves on: US Treasury yields, Bank of Japan policy, risk sentiment
How USD/JPY behaves
Often trends smoothly with US yields, then reverses sharply on risk-off news. Authorities have intervened to support the yen in the past, which can cause very fast moves.
What moves USD/JPY
- US Treasury yields and Federal Reserve expectations
- Bank of Japan policy and any change to its yield controls
- Risk sentiment: stock market falls often strengthen the yen
Tips for backtesting USD/JPY
- Remember a pip is 0.01 when you size positions
- Test Tokyo and New York separately
- Be careful around Bank of Japan meetings and any official comments on the yen
Frequently asked questions
How big is a pip on USD/JPY?
One pip is 0.01. For a standard lot it is 1,000 yen, which is about $6 to $7 in dollars depending on the price.
Why does USD/JPY follow US yields?
Higher US yields make dollars more attractive against the low-yielding yen, so the pair tends to rise with them.