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AuthorBy Chris Cammack
Updated: September 9, 2022

USD/JPY Background

The USD/JPY is the second most traded currency pair in the world, only the EUR/USD has a higher trade volume. Traditionally seen as a bellwether for the health of the wider Asian economy, the USD/JPY is heavily influenced by economic developments in the USA and Japan and its neighbours – especially China.  Since US-Asian economic ties are the driver of the global economy, the USD/JPY is often seen as an indicator of broader global economic health.

The JPY and the USD are both haven currencies, so this pair often features less volatility than other major pairs, which may put off some traders. The price movement of the USD/JPY is usually most active between the Asian open and the European open. Because it is so heavily traded, spreads on the USD/JPY are usually very tight – sometimes lower than 1 pip.

Common events that affect the price movement of the USD/JPY are major announcements on interest rates by the Bank of Japan and the Federal Reserve and the release of economic data that measures the economic health of Asia and the USA. USD/JPY is especially popular with institutional traders, banks, and multinational corporations. It is often used for hedging purposes, offsetting currency risk for manufacturers and multi-national exporters and importers.

The table below shows the Forex brokers with the lowest trading costs for USD/JPY, including the spread and commission. It also details the industry average spread and industry average trading cost for 1 lot of USD/JPY.

Best USDJPY Forex Brokers

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Broker
Overall Rating
Official Site
Min. Spread
Commission
Cost of Trading (USD)
Ind. Avg. Spread
Ind. Avg. Trading Cost
Max. Leverage (Forex)
International Regulators
Trading Desk
Hedging
Scalping
Compare
IG
4.69 /5
Read Review
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Your capital is at risk
1.26 pipsUSD 0USD 12.601.23 pipsUSD 16.7630:1FCA Regulated Forex BrokersASIC Regulated BrokersBundesanstalt für FinanzdienstleistungsaufsichtFinansinspektionenMarket Maker
Capital.com
4.68 /5
Read Review
Visit Broker >
Your capital is at risk
0.80 pipsUSD 0USD 81.23 pipsUSD 16.7630:1FCA Regulated Forex BrokersCySEC Regulated BrokersASIC Regulated BrokersMarket Maker
Pepperstone
4.61 /5
Read Review
Visit Broker >
Your capital is at risk
0.60 pipsUSD 0USD 61.23 pipsUSD 16.7630:1FCA Regulated Forex BrokersASIC Regulated BrokersCySEC Regulated BrokersDFSA Regulated Forex BrokersBundesanstalt für FinanzdienstleistungsaufsichtSecurities Commission of the BahamasCapital Markets AuthorityNDD
Markets.com
4.58 /5
Read Review
Visit Broker >
Your capital is at risk
3.00 pipsUSD 0USD 301.23 pipsUSD 16.7630:1FCA Regulated Forex BrokersCySEC Regulated BrokersASIC Regulated BrokersFinancial Services Conduct AuthorityBritish Virgin Islands Financial Services CommissionMarket Maker
Tickmill
4.48 /5
Read Review
Visit Broker >
Your capital is at risk
0.10 pipsUSD 4USD 51.23 pipsUSD 16.7630:1CySEC Regulated BrokersFCA Regulated Forex BrokersLabuan Financial Services AuthorityFinancial Services Conduct AuthorityThe Seychelles Financial Services AuthoritySTP
IC Markets
4.46 /5
Read Review
Visit Broker >
Your capital is at risk
0.74 pipsUSD 0USD 7.401.23 pipsUSD 16.7630:1CySEC Regulated BrokersASIC Regulated BrokersThe Seychelles Financial Services AuthorityECN/DMA
Go Markets
4.44 /5
Read Review
Visit Broker >
Your capital is at risk
0.20 pipsUSD 4USD 61.23 pipsUSD 16.7630:1ASIC Regulated BrokersCySEC Regulated BrokersFinansinspektionenMarket Maker NDD, ECN/DMA
AvaTrade
4.38 /5
Read Review
Visit Broker >
Your capital is at risk
1.00 pipsUSD 0USD 101.23 pipsUSD 16.7630:1ASIC Regulated BrokersFinancial Services Conduct AuthorityBritish Virgin Islands Financial Services CommissionFinancial Services AgencyCentral Bank of IrelandMarket Maker
Axitrader
4.34 /5
Read Review
Visit Broker >
Your capital is at risk
1.30 pipsUSD 0USD 131.23 pipsUSD 16.7630:1FCA Regulated Forex BrokersASIC Regulated BrokersFinancial Markets Authority of New ZealandDFSA Regulated Forex BrokersFinancial Services Authority – St. Vincent & the GrenadinesECN/DMA
BDSwiss
4.32 /5
Read Review
Visit Broker >
Your capital is at risk
1.60 pipsUSD 0USD 161.23 pipsUSD 16.7630:1Financial Services CommissionThe Seychelles Financial Services AuthorityMarket Maker, STP

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