When you look at trading on the forex market you should consider all of the major currencies. One of these currencies is the Japanese Yen. There is a lot of information that you should know about the yen before you trade. You should also consider how an FX converter can help you when you trade this currency.
The Yen and an FX Converter
When you look at an FX converter you will see that the Yen is one of the major currencies. There are 7 major currencies that make up 80% of the trading on the forex market. These 7 currencies are usually included in an FX converter because of their popularity. You should always consider these currencies first when you look at trading on the forex market. The use on an FX converter can help you keep track of the changes in the currency value and the rates you are going to be trading.
The Basics of the Yen
The Yen is one of the major trading currencies and Japan has one of the largest economies in the word. The GDP in Japan is also among the highest in the world and this country is one of the world’s largest exporters in terms of dollar value. The Bank of Japan is the controlling central bank that you would need to keep an eye on when you trade the Yen.
The Bank of Japan completes all actions with a mandate to minimise inflation and encourage economic growth in the country. Deflation has actually been a major threat to Japan for many years and there is a lot rates policy in play to stimulate demand and to encourage economic growth.
The Economy Backing the Yen
When you look at any currency on the forex market you need to consider what the economy behind the currency is. This will affect the ways that the currency moves and how you can predict the changes. The economy in Japan is noted for the low interest rates and the deflation that the economy has. Japan also has one of the oldest major economies. Japan is still a leading manufacturer in consumer electronics and this is what drives much of the exports in the country.
The Currency Drivers
When you look at trading with the Yen you need to consider the currency drivers. These are the points that you are going to consider when you analyse the market and the currency value. There are the normal economic drivers that you should look at like the GDP, inflation, trade balance and retail sales. There is also the Tankan survey that you can look at which looks at business confidence.
The Unique Yen
There are certain unique factors to the Yen that you should consider when you look at trading this currency. The Bank of Japan is known for currency intervention which allows them to keep the exports from the country high. However, this high export rate is often countered by the large public debt and the aging population of the country. All of these factors will need to be considered when you analyse what the Yen currency pairs are going to do on the market.