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AuthorAuthor: Chris CammackUpdated: March 9, 2022

Last Updated On March 9, 2022

Chris Cammack

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
Broker Score
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
Pepperstone
4.61 /5
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89%74- of retail CFD accounts lose money
0.60 pipsUSD 0USD 61.23 pipsUSD 16.76200:1FCA Regulated Forex BrokersASIC BrokersCySEC Regulated BrokersDFSA Regulated Forex BrokersBundesanstalt für FinanzdienstleistungsaufsichtSecurities Commission of the BahamasCapital Markets AuthorityNDD
IG
4.69 /5
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71% of retail CFD accounts lose money
1.26 pipsUSD 0USD 12.601.23 pipsUSD 16.76200:1FCA Regulated Forex BrokersASIC BrokersFinancial Services Conduct AuthorityBundesanstalt für FinanzdienstleistungsaufsichtFinancial Markets Authority of New ZealandDFSA Regulated Forex BrokersFinancial Services AgencyCommodity Futures Trading AssociationMarket Maker
Markets.com
4.68 /5
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70.3% of retail CFD accounts lose money
3.00 pipsUSD 0USD 301.23 pipsUSD 16.76300:1FCA Regulated Forex BrokersCySEC Regulated BrokersASIC BrokersFinancial Services Conduct AuthorityBritish Virgin Islands Financial Services CommissionMarket Maker
Tickmill
4.58 /5
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71% of retail CFD accounts lose money
0.10 pipsUSD 4USD 51.23 pipsUSD 16.76500:1CySEC Regulated BrokersFCA Regulated Forex BrokersLabuan Financial Services AuthorityFinancial Services Conduct AuthorityThe Seychelles Financial Services AuthorityDFSA Regulated Forex BrokersSTP
IC Markets
4.56 /5
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70.81% of retail CFD accounts lose money
0.74 pipsUSD 0USD 7.401.23 pipsUSD 16.76500:1CySEC Regulated BrokersASIC BrokersThe Seychelles Financial Services AuthoritySecurities Commission of the BahamasECN/DMA
AvaTrade
4.59 /5
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76% of retail CFD accounts lose money
1.00 pipsUSD 0USD 101.23 pipsUSD 16.76400:1ASIC BrokersFinancial Services Conduct AuthorityCySEC Regulated BrokersFinancial Services AgencyCentral Bank of IrelandFinancial Regulatory Services AuthorityIsrael Securities AuthorityMarket Maker
XM
4.45 /5
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75.33% of retail CFD accounts lose money
0 pipsUSD 0USD 00 pipsUSD 01000:1CySEC Regulated BrokersASIC BrokersDFSA Regulated Forex BrokersInternational Financial Services CommissionFinancial Services Conduct AuthorityMarket Maker
Axitrader
4.44 /5
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75.6% of retail CFD accounts lose money
1.30 pipsUSD 0USD 131.23 pipsUSD 16.76500:1FCA Regulated Forex BrokersCySEC Regulated BrokersASIC BrokersFinancial Markets Authority of New ZealandDFSA Regulated Forex BrokersFinancial Services Authority – St. Vincent & the GrenadinesECN/DMA
Forex.com
4.62 /5
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69%Hello Chrisof retail CFD accounts lose money
0.80 pipsUSD 0USD 81.23 pipsUSD 16.76200:1FCA Regulated Forex BrokersASIC BrokersMonetary Authority of SingaporeCySEC Regulated BrokersCayman Islands Monetary AuthorityMarket Maker
Eightcap
4.53 /5
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N/A of retail CFD accounts lose money
0.23 pipsUSD 7USD 9.301.23 pipsUSD 16.76500:1ASIC BrokersSecurities Commission of the BahamasFCA Regulated Forex BrokersCySEC Regulated BrokersMarket Maker NDD

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