Pairing – The amount of Japanese Yen (JPY) that one can buy for every European Euro (EUR).
Position
EUR – World’s second most traded currency
JPY - World’s third most traded currency
Important factors
- Weakening euro – After its 1999 introduction, the euro gained strength quicker than many expected, but economic situations globally, and particularly within the Eurozone recently have had an impact on the currency’s value.
- Other factors – The euro can also be affected by interest rate changes at the European Central Bank, political stability or instability across the Eurozone, and trade and manufacturing levels.
- Economy – The Japanese yen is most likely to be affected by the economic stability of Japan.
- Commodities – Due to the size of the automobile trade in japan, commodities closely associated with car manufacturing can also have an impact on this currency.
- Safe haven – Unlike the euro, the yen has been proven as a steady currency and is therefore popular as a safe haven option, although the Bank of Japan has been known to step in at such times.
