Yen Crosses

What are Yen Crosses in CFDs Trading?

Yen Crosses are currency pairs that don't include USD & have the Japanese Yen (JPY) as the Quote currency. Examples are EURJPY, GBPJPY, AUDJPY, and CADJPY. When you trade EURJPY or any other Yen pair, you are making a yen cross trade.

Why Yen Crosses Are Important

Yen Crosses Are Important because they are:

• Active and volatile: They often move more sharply than many other pairs, which makes them popular for CFD traders.
• Safe-haven effect: The Yen is seen as a safe-haven currency. When global risk rises, the Yen strengthens, pulling all Yen crosses lower.
• Market signals: Watching yen crosses in trading can give clues about global risk appetite and sentiment.

Example of a Yen Cross

If EURJPY rises from 160.200 to 161.050, the Euro has strengthened against the Yen. That 0.850 move (85 pips if 1 pip = 0.01) can create strong opportunities for CFD traders. On the other hand, if risk sentiment worsens and the Yen gains strength, EURJPY could quickly fall, showing how sensitive yen crosses in forex are to market mood.