Inside the Markets
U
USD/JPY
Description
USD/JPY is one of the most traded pairs globally, serving as a barometer for risk sentiment and carry trades. It is driven by the interest rate differential between the Fed and the Bank of Japan, and is highly sensitive to global risk-on/risk-off shifts.
Key risks
boj-intervention
This risk may negatively affect the instrument’s performance under certain market conditions.
fed-policy
This risk may negatively affect the instrument’s performance under certain market conditions.
carry-unwind
This risk may negatively affect the instrument’s performance under certain market conditions.
The list of risks is not exhaustive and highlights the most material structural and market-related factors.
Portfolio role & behavior
Economic role
hedgecarry
Behavior
risk-sensitiverate-differential
The information provided is for analytical and informational purposes only and does not constitute investment advice.
Any decisions are made independently by the user and at their own risk.
For details, see legal terms.