USD/JPY is the second most traded forex pair after the EUR/USD. The base currency is the US Dollar while the JPY is considered as a quote. This pair is known as Yen or Ninja among traders, since the Ninja comes from Japan. In addition to this, the Japanese Yen as a currency is considered to be a safe haven instrument, because all investors rush to buy it in times of financial market volatility. Market analysts also use this pair as a benchmark to understand the economic health of the Asia Pacific region.
What Is the Spread of the USD/JPY?
Generally, the spread for the USD/JPY ranges from 0 to 3 pips, but it varies from broker to broker. The lower the better, since it’s less costly to trade the USD/JPY. In case you entered a one lot position on USD/JPY with a one pip spread, you will pay 1000 Yen as a fee. However, if the spread is 3 pips, it will cost you 3000 Yen instead of 1000 Yen for a one lot of USD/JPY.
Which Types of Market News and Events Significantly Impact the USD/JPY?
The Federal Reserve or Bank of Japan rate decisions can impact this pair. You will see huge spikes on USD/JPY charts when such news hits, as individual and corporate traders adjust their positions according to the news.
What Is the Minimum Lot Requirement Needed to Trade This Pair?
Nano is the smallest lot that can be used to open a trade for the USD/JPY pair. If you use the MT4 as a platform you should input 0.0001 to be able to open a nano position, which is worth of 100 currency units.