Trading USD/JPY

As a result of relatively low bid-ask spreads and enticing liquidity, trading the USD/JPY is a popular major currency pair. Also, its characteristics make it a tempting proposition for both beginners and experienced traders. This page will break down the history of the currency pair, as well its benefits and drawbacks. How to start day trading the USD/JPY in 2024 will then be covered, from charts and signals to strategy and trading hours.

USD/JPY Trading Brokers

  1. OANDA US - OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.
  2. Vantage - Vantage offers 55+ currency pairs - above the industry average, so experienced traders can explore plenty of opportunities. Vantage's deep liquidity pool provides forex spreads from 0.0 pips in the ECN account, lower than many alternatives. There are also no commissions, deposit fees or hidden charges.
  3. IC Markets - IC Markets maintains its commitment to providing exceptionally tight 0.0-pip forex spreads on major currency pairs such as EUR/USD. This makes it an excellent option if you are seeking superior execution, with an average of 35 milliseconds. Additionally, if you are a high-volume trader, you can benefit from rebates of up to $2.50 per forex lot.
  4. AvaTrade - AvaTrade offers 50+ currency pairs with competitive spreads from 0.9 pips and zero commissions. You can trade majors, minors and exotics around the clock on industry-leading platforms, including MT4 and MT5. Traders can also access beginner-friendly trading tools and comprehensive forex education.
  5. - continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.

Trading USD/JPY Comparison

Trading USD/JPY Comparison
Broker Forex Assets EUR/USD Spread Forex App Rating Minimum Deposit Regulator Visit
65+ 1.6
$0 NFA, CFTC Visit
Vantage logo
55+ 0.0
IC Markets logo
75 0.02
$200 ASIC, CySEC, FSA Visit
AvaTrade logo
50+ 0.9
80+ 1.2
Pepperstone logo
100+ 0.1
$0 FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB Visit
XM logo
55+ 1.6
Eightcap logo
50+ 0.0
$100 ASIC, FCA, xCySEC, SCB Visit
PrimeXBT logo
45+ Variable
$0 - Visit
IQ Option logo
60+ 14 pips
$10 - Visit
IG logo
80+ 0.8
FxPro logo
70+ 1.58 pips (Ave)
$100 FCA, CySEC, FSCA, SCB, FSC Visit
FXCC logo
70+ 0.2
$0 CySEC Visit
XTB logo
70+ 1.0
Plus500 logo
60+ 0.6


Why We Chose OANDA US

OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available for short-term traders, alongside flexible contract sizes and automated trade executions.

"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."

- DayTrading Review Team
  • GBPUSD Spread: 3.4
  • EURUSD Spread: 1.6
  • EURGBP Spread: 1.7
  • Total Assets: 65+
  • Leverage: 1:50
  • Platforms: OANDA Trade, MT4, TradingView, AutoChartist

#2 - Vantage

Why We Chose Vantage

Founded in 2009, Vantage offers trading on 1000+ short-term CFD products to over 900,000 clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.

"Vantage remains an excellent option for CFD traders seeking a tightly-regulated broker with access to the reliable MetaTrader platforms. The fast sign-up process and $50 minimum deposit make it very straightforward to start day trading quickly."

- DayTrading Review Team
  • GBPUSD Spread: 0.5
  • EURUSD Spread: 0.0
  • EURGBP Spread: 0.5
  • Total Assets: 55+
  • Leverage: 1:500
  • Platforms: ProTrader, MT4, MT5, TradingView, DupliTrade

#3 - IC Markets

Why We Chose IC Markets

IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.

"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."

- DayTrading Review Team
  • GBPUSD Spread: 0.23
  • EURUSD Spread: 0.02
  • EURGBP Spread: 0.27
  • Total Assets: 75
  • Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)
  • Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade

#4 - AvaTrade

Why We Chose AvaTrade

AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, from CFDs to AvaOptions and now AvaFutures, alongside a comprehensive education center and multilingual customer support.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team
  • GBPUSD Spread: 1.5
  • EURUSD Spread: 0.9
  • EURGBP Spread: 1.5
  • Total Assets: 50+
  • Leverage: 1:30 (Retail) 1:400 (Pro)
  • Platforms: WebTrader, AvaTradeGO, AvaOptions, AvaFutures, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade

#5 -

Why We Chose

Founded in 1999, is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.

" remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."

- DayTrading Review Team
  • GBPUSD Spread: 1.3
  • EURUSD Spread: 1.2
  • EURGBP Spread: 1.4
  • Total Assets: 80+
  • Leverage: 1:400
  • Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral


Breaking Down ‘USD/JPY’

Firstly, what precisely does USD/JPY actually mean? Quite simply, it represents the exchange rate between the US dollar and Japanese yen. So, the figure you see quoted is how many Japanese yen you need to buy one US dollar. The US dollar is the base currency in this major currency pair.

Rich volatility and volume see a daily turnover in excess of $900 billion. This makes the USD/JPY the second most traded currency pair in the world, after the EUR/USD. Furthermore, it’s responsible for approximately 17.7% of the forex daily turnover.

Why Day Trade USD/JPY?

There are a number of reasons why realtime USD/JPY day trading is an enticing prospect. Some of the most appealing characteristics are as follows:

So, firstly this pair is one of the most actively traded. Also, technical outlook and availability of resources add to the benefits the USD/JPY currency pair offers.

USD/JPY Drawbacks

Before you load up your live online USD/JPY chart and decide whether to buy or sell, you should also be aware of the associated drawbacks and risks:

Overall, the USD/JPY pair has its advantages. However, it also comes with challenges. This is all the more reason to learn how to read the USD/JPY and conduct a thorough market analysis.

Influences On Movement

Accurate USD/JPY chart investing requires a detailed understanding of what causes movement. Therefore, the most significant influences are as follows:

To conclude, spotting trade opportunities in the USD/JPY requires an understanding of how these underlying forces work to tip the balance in favour of each currency. With that knowledge, telling whether prices will start going up or down may be easier.

Currency Correlations

Currencies do not move independently of each other and the USD/JPY pair is no exception. In fact, the USD/CHF and EUR/USD are the two other pairs with the highest correlation to the USD/JPY. The former has a positive correlation, and the latter a negative correlation.

Of course, it isn’t quite that straightforward, the degree of correlation can also change. It is taken as a measurement from -1 to +1. So, an understanding of this will allow you to use movements in other pairs to predict fluctuations in the USD/JPY.

In fact, there are several Japanese yen pairs that are highly correlated to the USD/JPY:

USD/JPY & Gold Correlation

It’s also worth pointing out that although gold is not a currency per say, as a result of electronic trading capabilities, it is now traded in much the same way. The yen is actually highly correlated to gold. So, USD/JPY and XAU/USD (gold/US dollar) are negatively correlated. The higher USD/JPY moves, the lower gold usually goes.

So, technical analysis now needs to cover more than the basics of support and resistance levels. If you can also utilise currency correlations to your advantage, you may be able to factor greater returns into your profit calculator.

USD/JPY Day Trading Strategy


Whether you opt for a USD/JPY scalping or breakout strategy, when you trade could make all the difference to your intraday profits. This is because in the day trading forex space, timing is everything.

Capitalising on USD/JPY targets requires trading during prime time slots. FX day trading may be available 24/7, but you could be better off focusing on quality rather than quantity.

Normally, when London and Europe are open for business, pairs with the Euro, British pound, and Swiss franc are most actively traded. Then, when New York opens, currency pairs with the US dollar and Canadian dollar gather momentum.

The USD/JPY, however, doesn’t quite follow this tradition. The pair sees relatively consistent volume throughout the day, of course with occasional spikes in volatility. Having said that, it is fairly accepted that the best time day trade the USD/JPY is between 1200 and 1500 GMT. Both London and New York are at full pace in this period. Although Tokyo’s opening time comes afterwards, the biggest daily moves often take place during this time frame.

At these times, you will also benefit from the tightest spreads and potentially the greatest opportunities to generate profits. So, check for intraday volatility and focus your trading capital into this time slot.

Rise & Shine

Determined USD/JPY day traders are at their desk premarket, preparing for the trading day ahead. Furthermore, they may have their economic calendar in front of them, along with historical exchange rate data on an Excel spreadsheet. Whilst everyone else is just waking up, they’ve poured through discussion forums and data, so they have clear expectations for the day ahead. Related stock shifts and daily pivot points may surprise others, but early risers are often ready and waiting to react. By closing time, unlike most, they haven’t sunk into the red.

So, in the forex world, where short and sharp reversals are a regular occurrence, preparation is key. Even if it means working outside of your normal market hours.

Simple Moving Average Cross & Bounce

The good news is, the USD/JPY is ideal for intraday trading. In fact, you can often see spikes between the 20 to 40 pip range within the first few minutes of the market’s opening. So, what strategy can you use to capitalise on rich price action movement?

The simple moving average cross and bounce is a straightforward strategy to set up and execute. Although some prefer USD/JPY 15-minute charts, this technique works best with a 4-hour candlestick chart.

The indicators you will need are as follows:

Buy Entry Rules

1. The BB (MA20) must be above MA (50).
2. Price needs to cross above both BB (MA20) and MA (50).
3. Price also must test BB (MA20) as support whilst above MA (50).
4. Look for bullish confirmation candle from support.
5. Enter a buy/long entry.

Sell Entry Rules

1. BB (MA20) needs to be below MA (50).
2. Price has to cross below both BB (MA20) and MA (50).
3. Price needs to test BB (MA20) for the resistance whilst staying below MA (50).
4. Look for a bearish confirmation candle from resistance.
5. Place a short/sell entry.

To minimise risk you should also look to incorporate stop-losses. So, place a stop-loss at the bottom/top wick of the confirmation candle, dependant of course, on whether you are buying or selling. You should then allow the price to move in the trade direction.

Once the price retests MA (20), you should move the stop-loss to the top/bottom wick of the candle. Keep repeating this until the price no longer stays above/below MA (20) and hits the stop-loss.


The latest market news updates on the USD/JPY currency pair can quickly affect market sentiment and lead to shifts. However, you can only capitalise on these moments if you understand how the markets reacted last time something like this happened.

So, to keep abreast of live news updates, recommendations, daily, weekly, and monthly forecasts, plus technical analysis and commentary, consider some of the popular resources below:

In addition, here are just a few more benefits some of the sources above can offer:

Regardless of whether your USD/JPY strategy focuses on resistance and support levels, or whether it centres around news events, being aware of current updates in the forex space could seriously enhance your technical analysis.


Japanese Economy

To make accurate USD/JPY predictions and forecasts, it also helps to understand some key events in the pair’s relationship.

Japan may lack natural resources and geographic size, but their work ethic, success with technologies, and boundary-pushing manufacturing techniques have ensured the economy has flourished since the damage it suffered in World War II. As a result, today the Japanese economy stands as the largest after the US and China.

However, historical data and news show us the Japanese economy came upon hard times in the early 1990s. This is because the real estate and domestic equity bubbles burst. As a result, the economydecelerated and there was substantial deflation.

However, the last twenty years have seen the introduction of a number of measures by the Japanese government and Bank of Japan (BoJ) to rejuvenate the economy. Whilst not totally successful, there is little debate that their economy today is a major player on the global stage.

Why does all this matter if you want to start day trading on the USD/JPY? Because an understanding of what and how previous factors have influenced economic strength and growth will give you a clearer future forex outlook. All of which may result in more accurate predictions and forecasts.

Japenese Yen

Since its introduction in July of 1871, the yen has flourished, becoming the most traded currency in Asia, and the third most popular in the world, following the US dollar and euro. On the whole, when the Japanese economy performs well, the yen increases in strength against the dollar.

In fact, steps that were taken to keep interest rates low to stimulate the economy have lead to the yen becoming an increasingly popular carry trade. This is where investors sell the yen to buy higher-yielding currencies. This constant selling has kept the yen at a much lower trade level than it may have reached otherwise. See our carry trade page for more details.

In conclusion, this all means USD/JPY traders need to keep abreast of new data and information about Japan’s economic growth and recovery. So, if a rise in rates takes place and the popularity of the yen carry trade diminishes, this could result in a strengthening of the yen.

US Dollar

The US dollar has been the standard US monetary unit for over two hundred years. However, whilst the Japanese yen and the economy suffered from World War II, the years that followed the war saw the US economy and dollar boom. This is partly because of the 1944 Bretton Woods Agreement.

In fact, if you load up a graph and look at USD/JPY historical exchange rate data, you will quickly see this agreement played a huge part in securing the success of the US dollar. Specifically, it ensured the US dollar’s place as the world’s official reserve currency.

Recent History

The USD/JPY relationship has seen significant fluctuations in recent years. Both currencies and economies have had their ups and downs. 2013 in particular, highlighted some interesting results. For example:

USD/JPY historical data has shown both economies and currencies have had their moments in recent years. However, understanding what has caused their successes and shortfalls will enable you to better predict and react to future reports.

Role of USD Day trading the USD/JPY currency pair

You can’t get a clear view of the USD/JPY relationship without understanding the significant role the US dollar plays. So below are just a few ways it holds a unique position in global finance:

Aspiring day traders would be wise to get an understanding of the reach and prominence the US dollar holds. In fact, monitoring US economic strength will help you to forecast how the USD/JPY will strengthen or weaken in favour of the US dollar. However, effective monitoring means looking out for signals and economic indicators. Some of the key reports to follow include:

So, by looking at charts and historical graphs, you get a feel for why certain currency pairings react as they do. Hourly charts and key levels may be important for your forex outlook today, but so too is information on events decades ago. Overall, all will enhance your understanding of what drives movement in the USD/JPY currency pair.

Role of JPYDay trading on the USD/JPY currency pair

It’s all too easy to focus your attention on the strength and role of the US dollar. However, the Japanese yen also plays a vital role. This is because it is the most liquid currency in Asia. Which also makes it a gauge for Asian economic growth.

In times of economic instability and volatility in Asia, traders often respond by buying or selling the yen. This is because other Asian currencies are more challenging to trade. A spike of which, can seriously impact market prices and quotes for the USD/JPY.

Also, it is traded in such high volume because the yen is accompanied by extremely low-interest rates. In recent years, the BoJ has purchased a substantial volume of yen to increase inflation. As a result, the ven has devalued alongside the increase of money supply. Exports surge, as do the price of imports, particularly commodities.

Due to its ranking as the third most traded currency after the US dollar and euro, it is also the world’s fourth reserve currency, following the US dollar, euro, and pound sterling.

Understanding the yen’s global role will allow you to better evaluate trends in the USD/JPY, not to mention conduct realtime fundamental analysis.

Final Word

In conclusion, the USD/JPY currency pairing ranks second for liquidity. In addition, its behaviour promises day traders precisely the volume and volatility required to yield profits. However, competition is fierce and an understanding of all the market forces at play will be needed to assert an edge.

So, you will have to conduct your own expert analysis, using interactive daily, weekly, and historical charts to make accurate projections. You will also need a forex trading platform that compliments your trading style. However, if you tick those boxes, plus utilise the resources outlined on this page, generating those rich forex profits may be a possibility.

For more guidance, see our forex page.