This reflects the value of an American Dollar against the Japanese Yen. This connects the Western countries with Asia, and represents around fourteen percent of the total turnover on the exchange market FOREX.
Japan is one of the main exporters in the world. A key characteristic for this pair is that the Japanese Central Bank is famous for frequent interventions on the currency market, and this can cause sudden changes on the market for the pair.
Both currencies are considered reserve currencies, meaning most of the central banks hold the currencies to manage the exchange rates or settle international transactions. Reserve currencies can be used as an additional diversification tool at the time of international recession or when there are failures in the economy.Trade JPY=