Minimum spread- 1
Typical spread- 3.1
Minimum nominal trade size- 1000
Overnight interest (annual) sell- -0.90%
Overnight interest (annual) buy- -1.30%
Trading hours (GMT) – 24*5
EUR/JPY is the ticker that represents the strength of the Japanese against the Euro. The Euro is denoted by the symbol €, and the yen symbol is – ¥, the letter designation in the Forex market for Euro and yen is EUR and JPY respectively. The largest spread of this currency pair is relatively high and amount to 3-5 points, this happens because of the indirect method used for calculating the price of the pair.
The pair is also known as cross-exchange pairs because it does not contain the US dollar. The currency pair contains the base currency in the numerator and the quoted currency in the denominator, and its ratio indicates how many units of yen are contained in one euro. Due to increased popularity of Japanese yen in the Forex market, any pair which contains yen in his composition has increased volatility.
Japanese yen is issued and regulated by the Bank of Japan, which was established in 1882 and it is on the fourth rank for the international mutual settlement by the international monetary fund, while Euro is a young currency, established in 1999, created on the basis of the European Currency Unit, which replaced a whole galaxy of national currencies of the EU countries. Therefore one of the features of the Euro is its susceptibility not only to macro-economic statistics of the entire EU zone but and to individual economies of France, Germany, formerly Great Britain
Understanding the EUR/JPY price
The rule to read the price quote is similar to any other pair. In EUR/JPY, the Euro represents the base currency in relation to the Japanese yen. Thus when the EUR/JPY rally that means the Euro is gaining strength over the Japanese yen, and the Euro loses its strength when EUR/JPY falls. The price quote of EUR/JPY means the amount of Japanese yen, which is equivalent to one euro. For example, when EUR/JPY quotes 118.260 prices, it means one euro is equivalent to 118.260 Japanese yen.
Key Factors to keep in mind while trading EUR/JPY
Monetary Policy Impact
The role of the Issuer and the Pan-European Currency Regulator is played by the European Central Bank (ECB). In addition to issuing activities, supervision, and regulation, the ECB Statutes spell out obligations to maintain the financial stability of the Eurozone. The monetary policy of this body affects almost all currencies of the Forex market. The meetings of the European Central Bank are monitored by the traders as dates and times are known in advance.
The interest rate of the Bank of Japan directly affects the exchange rate of the Japanese currency. The time and date of bank meetings are known in advance. Usually, this is January and the last two months of each quarter. Trades try to anticipate the interest rate decision before the meeting, which causes a significant surge in the volatility.
The economic calendar offers a significant amount of information. Some of the most important data are:
- CPI-consumer Price Index
- GDP– gross domestic product
- PMI– purchasing managers index
- Trade balance
- GDP –gross domestic product
Why trade in EUR/JPY with CAPITAL STREET
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- Safety of funds