What is Japanese Yen (JPY)?
The yen (JPY) is Japan's currency and a key global reserve asset. Managed by the Bank of Japan (BoJ), the yen has historically traded as a safe-haven currency β strengthening during global risk-off events as Japanese investors repatriate overseas assets. USD/JPY is dominated by the US-Japan interest rate differential.
Why it matters for investors
The yen affects Japanese exporters (Toyota, Sony, Honda β weak yen boosts their dollar earnings), the global "carry trade" (borrow cheap yen, invest in higher-yielding assets), and risk sentiment broadly. BoJ's ultra-loose policy stance (negative rates, yield-curve control) has long made the yen a funding currency.