JPY Forex Market

JPY Forex Market News Moving The Markets

Tue Apr 20 2021 09:06
Whenever an economic, political or social event occurs in a country, it affects its currency. Therefore, it becomes important for forex traders to follow economic news. But not only financial news is important, you also need to follow the political and industrial news

The Japanese Yen (JPY) is also considered as one of the most important currency pairs in the market. When we talk about the Japanese Yen, many currency pairs come to mind. Many currency pairs include the Japanese Yen. 

Whether it is American Dollar (USD), Australian Dollar (AUD), Swiss Franc (CHF), or the British pound or Pound Sterling (GBP). All major currencies are traded with JPY.

Deep dive into JPY Forex Market 

But what is moving the JPY forex market? Do you also have this question in your mind every day before you enter the trading market? Then here is the exact answer to your question. 

The JPY forex market is also seeing the impact of news. We are not only talking about forex news or stock news, but all relevant news from different sectors affect forex trading. 

All markets and their financial instruments react to different economic events. When we talk about a particular currency as a financial instrument, the economic situation of the country is important. 

Any news that is relevant to the national economy or causes changes is important. Besides the national news, the global market news is also considered important.

Major News That Impacted JPY 

There are many news in the market that affect or can affect the national currency. Most of these news are related to Japan and its jurisdiction. At the same time, there are also some factors and their news that are not directly related to Japan. 

Below are some of the most important news that you need to consider if you want to trade the Japanese Yen with other currencies.

COVID-19 Impact 

Coronavirus is one of the most influential factors for all industries. Whether it is stock trading, forex trading, cryptocurrencies, commodities or anything else. All sectors and trading markets are affected by it. Even commodities like crude oil trading and gold trading are affected. 

In the same way, COVID -19 had an impact on all countries and their economies. In Japan, there were many thousands of cases of COVID -19 and the whole country experienced an economic recession. It shrank the Japanese economy by almost 5%. It directly affected the JPY currency.

Sector Failure Affects JPY Forex Market 

When a particular sector is hit by the economic recession, it becomes big news. No matter what segment you invest in, you can see the effects of an economic recession. Japan has been in an economic recession for a long time. 

The last time it experienced a recession was in 2009, and now there are several industry failures in Japan due to the corona virus. As a forex trader, you need to keep an eye on these failures. According to a report, more than 700 Japanese restaurants are down due to COVID -19.


Japan is a country of innovations. Although it is a small country, it has obtained the status of a strong economy in the world. This is all due to its innovations. 

If you are a forex trader trading with Japanese Yen, you need to be up to date with the innovations. Keep track of all the innovations that are happening in Japan.


We can say that it has to do with innovation. But technology is one of the most emerging sectors in Japan. The government as well as private companies are paying a lot of attention to the world of technology. This is simply because technology is leading the world. Even countries like the US feel threatened by Japan in terms of technology.

BOJ Updates 

The Bank of Japan is the principal financial institution. It is something like a regulatory agency or a central bank established by and for the Japanese Government. It regulates so many finance-related things in Japan. 

As a currency pair trader, you need to take the BOJ and its decisions very seriously. To do this, you need to be up to date with the Bank Of Japan and all the news published about them.

International Relations 

Japan is a country of innovation and that is why all great countries build relationships with Japan. Whenever there is a new relationship between two nations, the opportunities for international business increase. 

So, this means that as a forex pairs trader, you need to keep track of where Japan is going in its international relations.

Monthly Economic Review 

The Japanese government reviews its economic situation every month. If you are not aware of the monthly economic reviews or reports, then you are missing out. 

Whether you are a beginner or an experienced trader. You need to track whether the country is doing well or not. If the country is not doing well, then there is a possibility that the currency will fall.

Post COVID-19 Recovery 

All countries have suffered from the pandemic, including Japan. But now Japan and other countries are on the road to recovery. One of the biggest hopes for Japan was the postponed 2020 Olympics. 

The 2020 Olympics and Paralympics were supposed to be held in Tokyo. But now they won't be held there. That may have an impact on Japan's economy. However, the IMF, International Monetary Funds, claimed that Japan will not see much impact from the Olympics postponement.

Retail Sales/Consumer Data 

The consumer data of Japan are published in different months of the year. They show retail sales, their growth or decline. When retail sales rise, it means businesses are experiencing a boom and the Japanese currency is rising. But a week ago, Japanese Yen saw a decline before the consumer data was released.

Wholesale JPY Forex Market News 

Wholesale markets and their prices are also critical to an economy. As a trader, you need to keep an eye on all of these markets. Regardless of whether you are connected to a market or not. But if you are trading the Japanese Yen, then that market will most likely affect the currency indirectly or directly

 Over the past year, the Japanese wholesale market has not seen a rise. But a few days ago (in the second week of April), the wholesale market experienced a rise.


Regional Comprehensive Economic Partnership (RCEP) is also one of the important events. As a money trader, you need to keep an eye on RCEP and its news. All the decisions made by the other partner countries and Japan are really important for Japan's economy and its currency.

Summary - JPY Forex Market 

The Japanese economy is affected by many factors out there in the global market. You need to keep track of all the events that are occurring in the global market. Whether you are a Japanese Yen trader or a trader from Japan who has traded other currencies. All the events that are happening in Japan and around the world are important to you. 

From economic releases to other events, you need to follow all things. Japanese news is the most important source of information for you as a forex trader. Moreover, there are many types of news and reports that you need to consider.

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