Japanese Yen (JPY)

Japan — Bank of Japan

Japanese yen — the leading funding currency and a global safe haven.

FX Session:
Tokyo
JPY/USD
0.00628
JPY/USD Exchange Rate
Economic Indicators
Indicator Latest Previous Change Date
Policy Rate 0.5 0.5 0.00 2025-06-17
Inflation 3.5 3.3 +0.20 2025-05-31
Core Inflation 3.3 3.1 +0.20 2025-06-30
Gdp 593.8 589.931 +3.87 2025-06-30
Unemployment 2.6 2.5 +0.10 2025-05-31
Trade Balance -4970.78437051 4672.85400371 -9643.64 2025-05-31
Retail Sales 12767.0 12960.0 -193.00 2025-05-31
Ppi 3.1 2.8 +0.30 2025-05-31
Bank of Japan Press Releases
CFTC Commitment of Traders — JPY
Upcoming Releases
  • Employment
  • Full Time Employment
  • Part Time Employment
  • Participation Rate
  • Unemployment
  • Core Inflation
  • Inflation
  • Employment
  • Full Time Employment
  • Part Time Employment
JPY Quick Links
JPY Pairs

About the Japanese Yen (JPY)

The Japanese yen (JPY) is the official currency of Japan and the third-most-traded currency in the world. It is widely used as a funding currency in carry trades thanks to historically low Japanese interest rates, and tends to strengthen during global risk-off episodes.

Bank of Japan: monetary policy framework

The Bank of Japan (BoJ) Policy Board holds eight Monetary Policy Meetings per year and targets 2% CPI inflation. After decades of unconventional policy — zero rates, QQE, yield-curve control — the BoJ has been gradually normalising, and JGB yields and the BoJ's rate guidance are closely watched globally.

What moves the JPY?

  • BoJ policy rate, JGB yield-curve guidance, and forward guidance from the Governor.
  • US-Japan 10-year yield differential, the dominant driver of USD/JPY.
  • Risk sentiment and global equity volatility (VIX).
  • Japan CPI excluding fresh food and energy ('core-core').
  • MoF FX intervention rhetoric and balance-of-payments flows.
  • Tankan survey, industrial production, and machinery orders.

Key data and events to watch

  • BoJ Monetary Policy Meeting decision and Outlook Report.
  • Japan national CPI and Tokyo CPI advance reading.
  • Tankan survey (quarterly) and machinery orders.
  • MoF FX intervention statements and reserves data.
  • US 10-year Treasury yield (key cross-market driver).

Frequently asked questions about the Japanese Yen

Why is the yen considered a safe-haven currency?
Japan runs a large net international investment position, has a deep and liquid government bond market, and households hold significant overseas assets. In risk-off episodes, Japanese investors repatriate capital and carry-trade unwinds reverse, both of which support the yen.
What is yield-curve control?
Yield-curve control (YCC) is a monetary-policy tool the Bank of Japan introduced in 2016 in which it targeted both a short-term policy rate and a specific yield level for 10-year JGBs. The YCC framework has been progressively unwound as the BoJ has moved towards normalisation.
What is a JPY carry trade?
A carry trade involves borrowing in a low-yielding currency (historically the yen) and investing in a higher-yielding asset abroad. The strategy earns the interest-rate differential as long as the funding currency does not appreciate sharply.
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