USD/JPY is the number of Japanese yen needed to buy one US dollar. It follows the gap between US and Japanese government bond yields more closely than any other major pair, because Japanese interest rates have been far below US rates for decades. It is also the major pair where official intervention is a real risk.
Key takeaways
- The yen was on one side of 16.8% of all currency trades in April 2025, making it the third most traded currency (BIS).
- When US yields rise relative to Japanese yields, USD/JPY tends to rise. When the gap narrows, it tends to fall.
- One pip is 0.01, the second decimal place. On a standard lot a pip is worth 1,000 yen, so its dollar value changes with the price.
- Japan’s Ministry of Finance bought yen in 2022 and again in 2024. Intervention can move the pair by several yen in minutes.
- The yen often strengthens abruptly when markets are stressed, as in early August 2024.
| What the quote means | Yen needed to buy one US dollar |
|---|---|
| Base / quote currency | US dollar (USD) / Japanese yen (JPY) |
| Yen share of FX turnover | 16.8% of trades (BIS, April 2025) |
| Pip | 0.01, the second decimal place |
| Pip value, 1.00 lot | 1,000 yen (about $6.67 at a price of 150.00) |
| Contract size, 1.00 lot | 100,000 USD |
| Most active windows | Tokyo morning (00:00–03:00 UTC) and the New York data window |
| Central banks to watch | Bank of Japan, Federal Reserve |
| Also watch | Japan’s Ministry of Finance, which decides on intervention |
| Symbol at Marketsall | USDJPY |
What is USD/JPY and how is it quoted?
Here the dollar is the base currency. A price of 150.00 means one dollar costs 150 yen, so a rising chart means a weaker yen. This trips up newer traders who are used to pairs where the dollar comes second. The pip is also in a different place: the second decimal, not the fourth. A move from 150.00 to 150.01 is one pip. Background on quoting is in what forex trading is and major, minor and exotic pairs.
What moves USD/JPY?
| Driver | How it tends to work | What to watch |
|---|---|---|
| The US–Japan yield gap | Japanese investors hold large amounts of foreign bonds. When US yields rise relative to Japanese yields, money tends to flow into dollars and USD/JPY rises. | US 2-year and 10-year Treasury yields, Japanese 10-year yield, what a bond yield is |
| Bank of Japan policy | The Bank of Japan ended negative interest rates in March 2024, its first increase in 17 years. Each step towards normal policy narrows the gap and tends to support the yen. | Bank of Japan decisions and outlook report, hawkish vs dovish language |
| Federal Reserve policy | The other half of the gap. Expected Fed cuts tend to pull USD/JPY lower. | FOMC meetings, US CPI, Non-Farm Payrolls |
| Intervention | When the yen weakens quickly, the Ministry of Finance may order the Bank of Japan to buy yen. Officials usually warn verbally first. | Statements from the finance minister, currency intervention |
| Risk sentiment and carry trades | Borrowing cheap yen to buy higher-yielding assets is common. When markets fall, those trades are closed and the yen jumps. | Equity indices, volatility, the carry trade |
| Energy prices | Japan imports almost all of its energy, so higher oil and gas prices worsen its trade balance and tend to weaken the yen. | Crude oil, LNG prices |
Intervention in practice
In September 2022 Japan bought yen for the first time since 1998, and it did so again in October 2022 and in spring and summer 2024. Each time USD/JPY fell by several yen within minutes. Intervention does not usually reverse a trend that is driven by the yield gap, but it makes holding large, tightly stopped positions near recent highs dangerous.
When is USD/JPY most active?
| Event | Local time | UTC | Frequency |
|---|---|---|---|
| Tokyo fixing | 09:55 Tokyo | 00:55 | Every trading day |
| Bank of Japan decision | No fixed time, usually late morning Tokyo | Roughly 02:30–04:00 | Eight times a year |
| Japan national CPI | 08:30 Tokyo | 23:30 the previous day | Monthly |
| US CPI and Non-Farm Payrolls | 08:30 ET | 12:30 summer / 13:30 winter | Monthly |
| FOMC statement | 14:00 ET | 18:00 summer / 19:00 winter | Eight times a year |
Japan does not change its clocks, so Tokyo times are constant in UTC all year. The Bank of Japan has no fixed announcement time, which means spreads can stay wide for an hour or more on decision days. See global market trading hours and the economic calendar.
USD/JPY pip value and position size
Because the yen is the quote currency, pip value is fixed in yen and floats in dollars. Divide the yen value by the current price to convert.
| Lot size | Units | Value of 1 pip | In dollars at 150.00 | In dollars at 140.00 |
|---|---|---|---|---|
| 1.00 (standard) | 100,000 USD | ¥1,000 | $6.67 | $7.14 |
| 0.10 (mini) | 10,000 USD | ¥100 | $0.67 | $0.71 |
| 0.01 (micro) | 1,000 USD | ¥10 | $0.07 | $0.07 |
Suppose USD/JPY is at 150.00 (an illustrative price) and you open 0.10 lots. The position is worth $10,000. At 1:200 leverage the margin is $50. A move of one yen against you, 100 pips, is a ¥10,000 loss, about $67, which is more than the margin. One-yen days are common in this pair. Start from position sizing.
USD/JPY vs USD/CHF vs EUR/JPY
| Feature | USD/JPY | USD/CHF | EUR/JPY |
|---|---|---|---|
| Pip location | 2nd decimal (0.01) | 4th decimal (0.0001) | 2nd decimal (0.01) |
| Pip value per 1.00 lot | ¥1,000 | 10 francs | ¥1,000 |
| Main driver | US–Japan yield gap | Safe-haven flows, Swiss National Bank | Risk appetite plus both EUR/USD and USD/JPY |
| Intervention risk | Yes, to support the yen | Yes, historically to weaken the franc | Indirect, through the yen |
| Read more | This guide | USD/CHF guide | Yen crosses guide |
What it costs to trade USD/JPY as a CFD
At Marketsall USD/JPY is traded as a CFD: no currency is delivered and your account is credited or debited with the price difference. See what a CFD is and spot FX vs CFDs.
| Cost | When it applies | Note for USD/JPY |
|---|---|---|
| Spread | Every trade, at entry | Tight in Tokyo, London and New York hours; widest in the hour or two after New York closes |
| Commission | Not charged on currency trades at Marketsall | Cost is built into the spread |
| Swap | Positions held past the daily rollover | Japanese rates have long been well below US rates, so swap on this pair can be a sizeable credit in one direction and a debit in the other. Check the current long and short values in the specification, because they change when either central bank moves. See triple swap Wednesday. |
| Slippage | Fast markets, gaps, news | Highest during intervention, Bank of Japan decisions and US data |
Key risks
Intervention risk. Official yen buying has moved the pair several yen in minutes, far enough to pass through stops.
Carry unwinds. On 5 August 2024 the Nikkei fell 12.4% in a day and the yen surged as leveraged yen-funded trades were closed across markets.
Bank of Japan surprises. Policy changes are rare but have produced some of the largest one-day moves among major pairs.
Leverage. A one-yen move is ordinary here and is roughly 0.7% of the price.
Risk warning. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on this website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money.
Frequently asked questions
What does USD/JPY mean?
USD/JPY is the exchange rate between the US dollar and the Japanese yen. The number shows how many yen one dollar buys. A quote of 150.00 means one dollar costs 150 yen, so a rising price means a weaker yen.
How much is one pip worth in USD/JPY?
One pip is 0.01. On a standard lot of 100,000 dollars a pip is worth 1,000 yen. In dollars that is 1,000 divided by the current price: about $6.67 at 150.00 and about $7.14 at 140.00.
Does Japan intervene in USD/JPY?
Yes. Japan’s Ministry of Finance decides on intervention and the Bank of Japan carries it out. Japan bought yen in September and October 2022, its first such intervention since 1998, and again in 2024. Each episode moved USD/JPY by several yen within minutes.
When is USD/JPY most active?
USD/JPY has two busy periods. The first is the Tokyo morning from about 00:00 to 03:00 UTC, including the 00:55 UTC fixing. The second starts at 12:30 UTC in summer or 13:30 UTC in winter, when US data is released.
Related reading
Plan stops around intervention risk
If you plan to hold USDJPY while Japanese officials are warning about the yen, read why stop-loss orders are not guaranteed and gap risk, then size the position so a fill well past your stop would still be a loss you can absorb.
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