Major pair

USD/JPY(Gopher)

USD/JPY is the second-most-traded pair globally. The price represents how many Japanese yen one US dollar buys. Critical feature: pips are measured on the 2nd decimal (0.01), not the 4th.

0.0 to 0.8 pips

Typical spread

60 to 90 pips

Daily range

$6 to $9 (varies with rate)

Pip value / lot

Tokyo open + NY (8 PM to 4 PM ET overlap zones)

Best session

What is USD/JPY?

USD/JPY pairs the United States Dollar against the Japanese Yen. JPY is unique among major currencies because of Japan's long history of zero or negative interest-rate policy, which made the yen the global funding currency for carry trades during the 2010s.

USD/JPY trades on a 2-decimal pip convention. A move from 149.80 to 150.00 is a 20-pip gain. Standard-lot pip value varies with the spot rate but typically sits around $6.50 to $9. Position-sizing math is different here than for EUR/USD; the lot calculator handles the conversion automatically.

Base currency: USD (US Dollar, United States)
Quote currency: JPY (Japanese Yen, Japan)
Pip location: 2nd decimal (0.01) — different from EUR/USD
Volume share: about 13% of daily global forex turnover, the second-most-traded major

When to trade USD/JPY

USD/JPY has two prime trading windows. The Tokyo open (8 to 11 PM ET) drives the early Asian-session moves on yen-specific news. The London-NY overlap (8 to 11 AM ET) then delivers the largest USD-side moves of the day.

Avoid the late-London window (12 PM ET onwards on quiet days) when both Asian and London desks are winding down and US flow has not yet picked up. Spreads stay tight but order flow goes thin.

Best session: Tokyo open + NY (8 PM to 4 PM ET overlap zones)
Avoid: Late London (12 PM ET on quiet days)

News events that move USD/JPY

Bank of Japan policy decisions are the highest-impact yen events. BoJ surprises are rare but devastating: the 2022 yield-curve-control adjustment moved USD/JPY 500 pips in 90 seconds. Less dramatic BoJ press conferences still routinely move the pair 60 to 100 pips.

On the USD side, FOMC and US CPI are the primary drivers. JPY is also a classic safe-haven currency: when global risk appetite collapses (equity selloffs, geopolitical shocks), USD/JPY typically falls hard as flows rotate into yen.

Central banks: Federal Reserve (Fed), Bank of Japan (BoJ)
Key releases: FOMC rate decisions, BoJ rate decisions, US CPI, BoJ press conferences, NFP

Want the full event calendar? See the economic calendar, and look up unfamiliar terms in the forex glossary.

USD/JPY FAQ

Why are pips on USD/JPY at the 2nd decimal?

Yen-quoted pairs (USD/JPY, EUR/JPY, GBP/JPY) measure pips at the 2nd decimal (0.01) because the yen has a much smaller per-unit value than other major currencies. One pip on USD/JPY moves the rate by 0.01, not 0.0001.

What is the pip value on USD/JPY?

Pip value varies with the spot rate. At 150.00, one pip on a standard lot is roughly $6.67. At 100.00, it would be $10. Always use a lot-size calculator that accounts for the live rate.

Why is JPY called a "safe haven"?

Japan runs the world's largest net-foreign-asset position. During global risk-off episodes, Japanese investors repatriate capital, buying yen and pushing USD/JPY down. The pair routinely falls in equity selloffs.

What news moves USD/JPY most?

BoJ policy decisions (especially yield-curve adjustments), FOMC, US CPI, and large risk-off equity moves. BoJ surprises produce the largest single-event ranges of any major pair.

Why is USD/JPY called "Gopher"?

The nickname is a play on the underground burrowing animal. It refers to the way the pair tends to break key levels with a series of small probes ("gophering") before committing direction.

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