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What Is USD/JPY

USD/JPY is the dollar priced in yen, with the dollar in the first place, so the number is large, a pip is the second decimal place rather than the fourth, up means a stronger dollar, and a pip at one lot is 1,000 yen whose dollar value moves with the rate. This paper shows you the pair in five lines; the idea as the five-yen coin with a hole beside a dollar; where the pip sits digit by digit on the euro pair and the yen pair; a pip in dollars at three example rates; and the three-decimal row and Specification window on your platform.

Difficulty
Beginner
Reading time
5 min
Pages
8
Reviewed by
Saman Rahbar

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USD/JPY, in five lines

USD/JPY is the dollar priced in yen, with the dollar in the first place. The number is how many yen one dollar costs, and because a yen is a small unit the number is large, 150.00 as a round example rate, and a pip is the second decimal place rather than the fourth: 150.00 to 150.01 is one pip. One lot is 100,000 dollars, and a pip at one lot is 1,000 yen, which is 6.67 dollars at a rate of 150. The number rises when the dollar buys more yen, so up is a stronger dollar, the opposite of the euro pair, where the dollar is second.

A coin with a hole

Picture the five-yen coin, the one with a hole in the middle, beside a dollar coin. A yen is a small unit of money, worth less than a cent, so a dollar costs many of them, about a hundred and fifty at the example rate, and the number on the pair is that count with two decimal places. That is why the pair has a big number and why its pip is the second decimal place rather than the fourth: a hundredth of a yen is already a small enough step to count in.

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