EUR/JPY Forex Trading
EUR/JPY Live Charts
Use our EUR to JPY live charts to get the most up-to-date insight into the recent performance of this 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 EUR/JPY Trading?
EUR/JPY FX trading refers to the buying and selling of the euro against the Japanese yen in the foreign exchange market. It is one of the major currency pairs that attracts significant attention from traders and investors worldwide. The exchange rate between the euro and the Japanese yen represents the relative value of these two currencies.
The exchange rate of EUR/JPY represents how many yen are required to buy one euro. For example, if it is 130, it means that 130 Japanese yen are needed to purchase one euro.
The euro is the official currency of the European Union and is widely used across its member states. It is considered one of the most traded currencies globally. The Japanese yen, on the other hand, is the official currency of Japan, an economic powerhouse in Asia. The yen is also among the most traded currencies and is known for its liquidity and stability.
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EUR/JPY Historical Performance
The launch of the euro as a common currency in 1999 led to the formation of the EUR/JPY pairing. In the early 2000s, the market saw a gradual rise from around 100 to above 160 by 2008. This period was characterised by a generally weakening Japanese yen against major currencies.
During the financial crisis risk aversion soared, and investors sought safe-haven assets like the Japanese yen, causing its sharp appreciation. The rate plummeted from the highs of 2008 to below 115 by early 2009.
The Eurozone debt crisis, which began with Greece's financial struggles, had a profound effect on EUR/JPY. Concerns over the stability of the Eurozone and the potential breakup of the euro led to heightened volatility and downward pressure on EUR/JPY. The market experienced significant swings and dropped to historical lows of around 95 in 2012.
From 2012, the Bank of Japan implemented aggressive monetary policies known as Abenomics. They aimed to combat deflation and stimulate economic growth in Japan. As a result, EUR/JPY rose steadily, reaching levels above 140 by 2014.
In more recent years, the pair has continued to exhibit volatility due to various factors such as geopolitical events, economic data releases, and shifts in market sentiment.
Major Factors That Affect the EUR/JPY Pair
Economic data from the Eurozone and Japan plays a significant role in influencing the EUR/JPY value. Indicators such as GDP growth, inflation levels, employment figures, consumer spending, and trade balances can impact the pair’s value.
The monetary policies implemented by the European Central Bank (ECB) and the Bank of Japan (BoJ) have a direct impact on the price. Interest rate decisions and statements from central bank officials regarding monetary policy outlook can significantly influence the market.
Political instability, elections, trade disputes, and economic crises can impact EUR/JPY. Uncertainty and market volatility stemming from such events may lead to price fluctuations.
EUR/JPY is also influenced by market sentiment and risk appetite. In times of market optimism and risk-on sentiment, investors tend to favour riskier assets and may sell the Japanese yen (considered a safe-haven asset) in favour of the euro. Conversely, during periods of market uncertainty or risk aversion, the yen may strengthen.
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