Do you know that in order to reap the full benefits of forex trading, market timing is crucial? A skilled trader will invest smartly, and no matter what asset class one deals with, knowledge of the markets is vital.
Kavan Choksi Japan– what should traders know about the USD/JPY pair?
Both the Japanese Yen and the US Dollar are potent currencies in the world. When together, they form a strong currency pair in the financial markets, and traders depend upon them to make lucrative profits. However, there are still a majority of traders that find the duo to be a complex pair; however, if you understand the Yen against the US dollar in terms of notes, bills, and Treasury bonds, understanding this pair becomes simple.
A business expert speaks on this powerful currency pair in the financial markets
Kavan Choksi Japan is a widely respected investor, business management expert, and wealth consultant known for guiding businesses on how they can generate lucrative returns on their investments. He also believes in giving back to the community and recently has pledged to donate $500,000 to CARE, a leading NGO for the people in Ukraine suffering because of the Russian invasion.
What is the primary driver of this currency pair?
Kavan Choksi Japan says that when it comes to the currency pair of the Japanese Yen and the US Dollar, their primary driver is not just limited to the US Treasuries but also to the rates of interest in both Japan and the USA. For traders, this means this pair has an element of risk when it comes to buying and selling in the forex market with regard to the rates of interest. Traders can determine the direction of this pair by observing the rates of interest.
Understand the pair better for trade
The abbreviation of this currency pair, USD/JPY, depicts the rate of currency exchange for the currencies of Japan and the USA. In simple terms, this abbreviation shows the trader how much Yen is needed to buy one US dollar, or the quote currency and the base currency. The exchange rate of this pair has high liquidity, and this is why it is one of the most popularly traded currencies across the globe. The reason behind the above is like the US Dollar; the Japanese Yen is also a reserve currency.
What is the best time for this currency pair to trade?
Currency traders know that the ideal time for one to trade the JPY/USD currency pair is between the times of 8 am to 11 am ET. This is the time when traders are able to detect the most significant moves in the price. There is also a lot of volatility in the market during this time. So, if one is interested in trading in the JPY/USD pair, this three-hour interval is crucial. In the Forex market, even though the Tokyo market is not open, they are available in New York and London.