EUR/JPY chart by TradingView
EUR/JPY - This is the forex quote for the
Euro vs. Japanese Yen exchange
rate. EUR (the 'base currency') is quoted
in terms of JPY (the 'counter currency').
The Yen is a historically low-yielding
currency, making an attractive vehicle to
fund carry trades (where traders borrow
cheaply in JPY to buy higher-yielding
currencies, including EUR. Investors tend
to favor carry trades at times of optimism
about global economic performance and
stability; they shun them at times of
market stress. This makes EUR/JPY
sensitive to swings in broad-based market
sentiment trends. The pair may likewise
find volatility in news-flow related to the
Eurozone debt crisis as well the
extraordinary anti-deflation policy efforts
from the Bank of Japan introduced in
2013.