EUR/JPY Currency Trading (EUR-JPY)
The EUR/JPY rate is comprised of the Euro as the ‘base’ currency, and the Japanese yen as the ‘counter’ or ‘quote’ currency.The EUR/JPY exchange rate is actually a comparison of the value of one currency in relation to the other. For example, the quotation EUR/JPY 130 means that one Euro is exchanged for 130 Japanese yen. If the forex rate increased to 140, this would reflect a strengthening Euro as compared with the Japanese yen. You would buy, if you expected that the Euro would continue to strengthen against the Japanese yen.
As trading occurs on currency comparison, it is easy to trade EUR/JPY in any economic environment. The EUR/JPY exchange rate can also affect the movement of other forex rates such as USD/JPY. For example, if the factors that lead to the appreciation of the Euro (thus driving up the EUR/JPY rate) impact the US Dollar more than the Yen, the USD/JPY rate may decrease.
Trading USD/JPY online offers particular advantages, including round-the-clock trading.