USD/JPY trading guide for beginners
USD/JPY is the US dollar against the Japanese yen and one of the most traded pairs in the world. It is a little different from EUR/USD: yen pairs are quoted to two decimals and the pip value depends on the price.
By the TradeFather education team · Updated 27 Oct 2026 · Educational content, not financial advice
- On JPY pairs 1 pip = 0.01, not 0.0001.
- Pip value per standard lot = 1,000 yen ÷ USD/JPY price (about $6.7 at 150).
- US bond yields and the Bank of Japan are the main drivers.
- Active in the Tokyo session and again in New York.
Pip value on USD/JPY
Because the quote currency is yen, each pip is worth 1,000 yen per standard lot, converted to dollars at the current price.
| USD/JPY price | Pip value (1.00 lot) | Pip value (0.01 lot) |
|---|---|---|
| 130 | ≈ $7.69 | ≈ $0.077 |
| 150 | ≈ $6.67 | ≈ $0.067 |
| 160 | ≈ $6.25 | ≈ $0.063 |
Main drivers of USD/JPY
Rising US Treasury yields have often lifted USD/JPY; falling yields have weighed on it.
Long-standing ultra-low rates kept the yen weak; any shift in BoJ policy can move the pair sharply.
The yen is often treated as a safe haven, strengthening during market stress.
Japanese authorities have stepped in to support the yen at times, causing sudden large drops.
When USD/JPY moves most
The Tokyo session (roughly 5:30 AM–2:30 PM IST / 5:00 AM–2:00 PM PKT) brings yen activity, and the New York session (from about 5:30 PM IST / 5:00 PM PKT in summer) brings the US data that often drives the biggest moves.
Risk notice
Forex and CFD trading is high risk. Leverage magnifies losses as well as gains, and regulated brokers' own disclosures typically show that most retail CFD accounts lose money. Never trade money you cannot afford to lose. TradeFather is an independent education and tools provider — not a broker or financial adviser — and does not provide forex signals or execute trades.
If you live in India or Pakistan: RBI does not permit residents to fund overseas online forex/CFD platforms, and SBP has declared offshore forex, margin and CFD platforms illegal for residents. This guide explains how markets work; it is not a recommendation to open such an account.
Frequently asked questions
+Why is the JPY pip 0.01?
The yen has a much lower unit value, so prices are quoted with two decimals and the pip is the second decimal.
+Is USD/JPY volatile?
It is usually calm but can move very sharply on BoJ news or intervention.
+Does USD/JPY have swap?
Yes. The rate gap between the US and Japan has made swap significant on this pair — check your broker's rates.
Sources and further reading
Official and primary sources, links checked 27 Oct 2026. Rules, schedules and broker terms change — always confirm on the source.