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Pairing – The amount of Japanese yen (JPY) that one can buy for every United States dollar (USD).
USD – World’s most traded currency
JPY - World’s third most traded currency
Interest rates – This pairing is most likely to be affected by the interest rates set by the US Federal Reserve and the Bank of Japan, the latter has been known to intervene when the currency is being used as a reserve currency, which can drive the price up.
Other economic factors – Both of these currencies are heavily affected by GDP, inflation, and unemployment numbers in the respective nations.
Carry trade – This pairing has been associated with the carry trade for a long time, often utilised here due to the very low interest rates the Bank of Japan set. This tradition was cut short during the global debt crisis, when the value of the yen increased substantially, however, the intervention of the G7 to slow down the strengthening Japanese currency saw the possibility for the carry trade to return to this pairing.