Best Brokers for Investing in EUR to JPY May 2025

Compare the Best EUR/JPY Trading Brokers

How to trade EUR/JPY?

Smart day traders can find the volatility and liquidity they need in the EUR/JPY currency pair to make money in the forex market. However, the pair can move based on news about the Eurozone debt crisis, as well as the release of economic data, government actions and changing market sentiment. So, everything you need to know about day trading the EUR/JPY, including its history, pros and cons, as well as charts, strategy, technical analysis and trading hours, will be covered on this page.

History of the EUR/JPY

The Meiji government's initiative to modernize the economy led to the introduction of the Japanese yen in the 19th century. It was designed to harmonize Japan's monetary policies and was based on the decimal system then widely used in Europe. The feudal fiefdoms (regions) of Japan all had their own currencies before the introduction of the yen. The yen changed this situation and became the national unit of account. In 1999, the euro was launched, playing a similar role to the yen. The 27 nations that make up the European Union (EU) are politically united. The member nations nevertheless had their own currencies, until the introduction of the euro. The EU has become uniform under the Euro. Although not all member states have adopted it, it is considered the default monetary system of the Union (19 member states have adopted it). As a result, it has overtaken the U.S. dollar as the second most traded currency in the world. Because of their shared historical experiences, the EUR/JPY currency pair unites two previously disparate monetary systems. It is therefore a fairly stable pair to trade for this reason. In addition, the second and third most traded currencies in the world are the Euro and the Yen. In fact, both of these currencies are often used by major nations as reserve currencies (i.e. as a backup currency).

Factors Affecting the EUR/JPY

There are many political and socio-economic variables, some of which are discussed at the end of this tutorial, that can influence the EUR/JPY currency pair. However, in general, you can expect the EUR/JPY exchange rate to fluctuate in response to political events, armed conflict, social unrest, economic instability, quantitative easing, trade disputes and pandemics.

The Function of the Euro

The Euro was created to provide a single currency system for the members of the European Union. The euro is used by 19 of the 27 members of the bloc, which means that the European Central Bank is responsible for managing fiscal policy. In reality, interest rates and, to some extent, economic policies are the same in all nations using the euro. The fact that 340 million people use the euro gives it enormous influence at the national and global level. Trade agreements with other political unions/entities also have an influence on the Euro, which means that their value can also have an effect. What is fascinating about the Euro is that it can be influenced by what happens in one of its members. Germany, France, Italy and other countries are sovereign nations, even though they are part of a political union. Therefore, the euro can change in response to a nation's problems.

The Function of the Japanese Yen

The yen is less affected by regional problems than the euro. Nevertheless, it serves as a symbol of Japan's strength on the economic, political and social fronts. The yen is a well-known currency as Japan is one of the oldest major economies in the world. It is also true that the economy has not experienced a major boom since the stock market and real estate booms of the 1990s. Despite this, the yen is still considered an important global currency. The yen can be a turbulent currency to trade due to the inconsistency between its position as a leading currency and the sometimes-precarious economic situation in Japan.

When to buy and sell EUR/JPY

Trading the EUR/JPY currency pair is risky. You can never predict with certainty when the value of the pair will rise or fall. Professionals use both subjective and objective data to get the best estimates possible. Subjective data includes things like news reports and expert opinions that cannot be measured objectively. Technical analysis and price history charts are two examples of elements that affect the objectivity of the data. It is by combining these two elements that you will have the best chance of trading the EUR/JPY at the right times.

How to trade the EUR/JPY

Using our suggested forex brokers (Plus500 or XM), you can trade the EUR/JPY. You need to make a deposit once you click on the sign-up buttons and open an account. You can then choose between two options after finding the EUR/JPY pair in the trading hall:

 
• Buy: Going long is another name for "buying" a currency pair. In essence, it means that you expect the value of the pair to rise. Therefore, a buy order (also called a long position) on the EUR/JPY currency pair indicates that you think the Japanese yen will rise in value against the euro.
 
• Sell: A short position is another name for "selling" a currency pair. It indicates that you anticipate a decline in the value of the pair. Therefore, a sell order (also known as a short position) indicates that you think the value of the Japanese yen will decline against the euro for the EUR/JPY currency pair.

How to determine your profit in the foreign exchange market

When there is a gain between the time you start a trade and the time you finish it, you have made money in the foreign exchange market. For example, you will make money if you go long EUR/JPY and the value of JPY rises. On the other hand, if you go short and the JPY rises in value against the Euro, you will suffer a loss. Naturally, you will profit from going short if the JPY falls against the Euro and vice versa. The difference between the opening price and the closing price is the amount of profit you will get.

Risks of trading EUR/JPY

Trading the EUR/JPY currency pair has some dangers, as we have already mentioned. We have already mentioned that the Japanese economy has been growing slowly over the past few decades and that this can make its currency unstable. We also know that problems affecting a single EU member state can destabilize the Euro. When it comes to trading the EUR/JPY currency pair, here are some additional risks to consider:

 
• Overbidding: If you spend a large amount of your bankroll, you are exposing yourself to unnecessary risk since a single trade can result in your loss.
 
• Leverage: Leverage is great because it allows you to access a larger market position with a modest commitment, but too much leverage can be detrimental. Leverage can increase your gains, but it can also increase your losses.

4 Best Brokers for Trading EUR/JPY

1. Pepperstone - Best Overall Broker for EUR/JPY Trading.

   Pepperstone offers a superior trading environment for EUR/JPY with tight spreads and quick execution. The broker's advanced trading tools and reliable platform make it an excellent choice for traders aiming to take advantage of the movements in the EUR/JPY pair.

2. FPMarkets - Top Choice for EUR/JPY Trading.

   FPMarkets provides exceptional trading conditions for EUR/JPY, featuring tight spreads, fast execution, and flexible leverage up to 1:500. Ideal for traders seeking exposure to the Euro and Japanese Yen markets.

3. Plus500 - Best Broker with Multiple Licenses, including Dubai.

   Plus500 provides a secure and intuitive platform for trading EUR/JPY (CFDs). With comprehensive regulatory licenses and robust investor protection measures, Plus500 is ideal for traders looking for a reliable platform to trade this popular currency pair.

4. XM - Best Platform and Excellent Brokerage for Beginners.

   XM excels by offering extensive educational resources and practical online workshops to support traders in mastering EUR/JPY trading. The platform's user-friendly interface and comprehensive support make it a great choice for beginners.

F.A.Q

How is the USD/JPY traded? You must have access to a forex brokerage account like Plus500 in order to trade the USD/JPY or any other currency pair.

If interest rates rise, what do you think will happen to the USD/JPY exchange rate? You get more money for the money you save in a bank account when interest rates rise. If one currency raises its rates while another does not, the value of the currency increases because of the higher rates. More people will want to exchange yen for dollars if you can get more money by holding your cash in dollars rather than yen, which will increase the relative value of the dollar.

What is the best time of day to trade EUR/JPY? Between 13:00 and 16:00 GMT, the pair often has the most liquidity in this situation.

Is trading the EUR/JPY simple? For this reason, trading the EURJPY may be simpler than other currency pairs. However, we emphasize that you should backtest before investing money or capital.