Import/export markets can be a useful indicator for breaking USD JPY news. But global macro-economic factors also have a significant impact on the USD JPY rate. Like the Swiss franc, the Japanese yen is a ‘safe haven’ currency – sought out by investors as the yen appreciates when the global economy slows.
Traders considering USD to JPY should also keep track of BoJ announcements. Often, Japanese interest rates remain low and this makes the yen a popular carry trading option – selling low to purchase higher-yielding currencies. Similar announcements by the USA’s Federal Reserve may also cause movement in the USD JPY rate for traders to be aware of.