CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Pairing – The amount of Japanese Yen (JPY) that one can buy for every European Euro (EUR).
EUR – World’s second most traded currency
JPY - World’s third most traded currency
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.