NOK/JPY Trading
NOK/JPY is a cross currency pair that provides traders with significant price volatility. Interested? Start trading NOK/JPY with FXOpen today!
NOK/JPY Live Charts
Use our NOK/JPY live chart to get the most up-to-date insight into the recent performance of this pair and other currency pairs used in forex trading. It can help you make informed decisions at home or on the go – no matter if you use the TickTrader desktop platform, web terminal, or mobile app. Our real-time chart includes the very latest price, historical data, and technical analysis tools to help guide your next trade.
What Is NOK/JPY Trading?
NOK/JPY trading refers to the trading of the Norwegian krone against the Japanese yen. The exchange
rate represents how much one unit of the first currency (NOK) is worth in terms of the second
(JPY).
The exchange rate NOK/JPY tells you how many Japanese yen (quote currency) you need to purchase one
Norwegian krone (base currency). For example, if the NOK/JPY exchange rate is 10.00, it means you
would need 10 Japanese yen to buy 1 Norwegian krone.
Traders might engage in this type of trading for various reasons, such as portfolio diversification,
speculation on the economic performance of Norway and Japan, or to hedge against currency risk when
conducting business or investments involving these two currencies.
NOK/JPY is one of the exotic pairs. Traders like trading it due to its high volatility and exciting
market movements. FXOpen provides fast trade execution and spreads from 0.0 pips to help traders
catch the best possible conditions.
NOK/JPY Historical Performance
In the early 2000s, the NOK/JPY exchange rate fluctuated within a relatively wide range due to
various economic factors affecting Norway and Japan. The Norwegian krone experienced some
volatility due to fluctuations in oil prices, as Norway is a major oil exporter. Japan, on the
other hand, was grappling with deflation and economic challenges.
At the beginning of 2001, the pair started its strong uptrend that lasted until the fourth
quarter of 2007. The global financial crisis led to significant volatility in currency markets.
The NOK/JPY pair experienced a sharp decline, especially in 2008. Safe-haven flows into the
Japanese yen contributed to its appreciation against the Norwegian krone.
In the years following the financial crisis, the NOK/JPY exchange rate saw a series of
fluctuations driven by factors such as global economic recovery, changes in oil prices, and
central bank policies.
The pair couldn’t form a new strong trend and was moving within the 13-16 range from 2010 until
2012. But the krone managed to strengthen against the yen, and by the middle of 2013, the pair
surged above 17. However, the rate soon declined.
From 2015 to the middle of 2020, the market was moving down. The COVID-19 pandemic, which began
in 2020, had a profound impact on global markets, including currencies. Both Norway and Japan
faced economic challenges as lockdowns and restrictions affected economic activity. Safe-haven
demand for the Japanese yen contributed to its strength against the Norwegian krone during the
initial stages of the pandemic.
In more recent years, the exchange rate has been influenced by a mix of economic indicators,
central bank policies, and global events.
Major Factors That Affect the NOK/JPY Pair
The economic calendar is a vital part of forex trading. Traders closely track indicators such as
unemployment rates, inflation, consumer and business sentiment, and manufacturing output. Strong
economic data in one country relative to the other can lead to a stronger currency.
Central bank interest rate decisions have a significant influence on domestic currencies. Higher
interest rates in one country compared to the other lead to appreciation of the domestic
currency. Therefore, the monetary policy decisions of the central banks (Norges Bank for Norway
and the Bank of Japan for Japan) are one of the key factors that determine market moves.
Geopolitical and internal political events can create uncertainty in the markets and influence
investor sentiment, leading to currency fluctuations. Investor sentiment and risk appetite can
influence currency movements. During times of uncertainty or global economic instability,
investors might seek safe-haven assets, potentially leading to the appreciation of the Japanese
yen.
Both Norway and Japan are major exporters of certain commodities. For Norway, oil is a crucial
export, while Japan relies on imports of raw materials. Fluctuations in commodity prices,
especially oil, can impact their respective currencies.