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AuthorAuthor: Chris Cammack
Updated: Mar 21, 2023
Last Updated On Mar 21, 2023
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.

Both the JPY and the USD are 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 multi-national 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
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75% of retail CFD accounts lose money
1.26 pipsUSD 0USD 12.601.23 pipsUSD 16.76200:1FCA Regulated BrokersASIC Regulated Forex BrokersBundesanstalt für FinanzdienstleistungsaufsichtFinancial Markets Authority of New ZealandDubai Financial Services AuthorityFinancial Services AgencyCommodity Futures Trading AssociationFinansinspektionenMarket Maker
Pepperstone
4.61 /5
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75.8% of retail CFD accounts lose money
0.60 pipsUSD 0USD 61.23 pipsUSD 16.76400:1Capital Markets AuthorityFCA Regulated BrokersASIC Regulated Forex BrokersCySEC Regulated BrokersNDD
Markets.com
4.58 /5
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70.3% of retail CFD accounts lose money
3.00 pipsUSD 0USD 301.23 pipsUSD 16.76300:1FCA Regulated BrokersCySEC Regulated BrokersASIC Regulated Forex BrokersFSCA Regulated Forex BrokersBritish Virgin Islands Financial Services CommissionMarket Maker
AvaTrade
4.49 /5
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76% of retail CFD accounts lose money
1.00 pipsUSD 0USD 101.23 pipsUSD 16.76400:1ASIC Regulated Forex BrokersFSCA Regulated Forex BrokersCySEC Regulated BrokersFinancial Services AgencyCentral Bank of IrelandFinancial Regulatory Services AuthorityMarket Maker
Tickmill
4.48 /5
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75% of retail CFD accounts lose money
0.10 pipsUSD 4USD 51.23 pipsUSD 16.76500:1CySEC Regulated BrokersFCA Regulated BrokersLabuan Financial Services AuthorityFSCA Regulated Forex BrokersThe Seychelles Financial Services AuthoritySTP
HFM (HotForex)
4.43 /5
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72.90% of retail CFD accounts lose money
1.70 pipsUSD 0USD 171.23 pipsUSD 16.76400:1Capital Markets AuthorityCySEC Regulated BrokersFCA Regulated BrokersFSCA Regulated Forex BrokersSTP
IC Markets
4.36 /5
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77% of retail CFD accounts lose money
0.74 pipsUSD 0USD 7.401.23 pipsUSD 16.76500:1CySEC Regulated BrokersASIC Regulated Forex BrokersThe Seychelles Financial Services AuthoritySecurities Commission of the BahamasECN/DMA
Vantage FX
4.35 /5
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of retail CFD accounts lose money
0 pipsUSD 0USD 00 pipsUSD 0500:1FCA Regulated BrokersFSCA Regulated Forex BrokersASIC Regulated Forex BrokersCayman Islands Monetary AuthorityVanuatuECN/DMA, STP
XM
4.35 /5
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77.37% of retail CFD accounts lose money
0 pipsUSD 0USD 00 pipsUSD 0500:1CySEC Regulated BrokersASIC Regulated Forex BrokersDubai Financial Services AuthorityInternational Financial Services CommissionMarket Maker
Axi
4.34 /5
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75.6% of retail CFD accounts lose money
1.30 pipsUSD 0USD 131.23 pipsUSD 16.76500:1FCA Regulated BrokersASIC Regulated Forex BrokersFinancial Markets Authority of New ZealandDubai Financial Services AuthorityFinancial Services Authority – St. Vincent & the GrenadinesECN/DMA

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