What is the "Gopher"?

USD/JPY is a currency pair consisting of the US dollar and the Japanese yen. This pair is known as "the Yen" or the "Gopher".

It shows how many yen (the quote currency) it costs to purchase one US dollar (the base currency).

Trading the USD/JPY or "Gopher"

The USD/JPY is one of the seven major currency pairs that contain the US dollar. It is the second most traded pair on the forex market. It is considered to be very liquid because the yen is the 4th most important reserve currency globally (the US dollar is the first).

As currency pairs are affected by external factors that influence an individual currency value, the USD/JPY will fluctuate according to the difference in interest rates set by the Federal Reserve (Fed) and the Bank of Japan. For example, any intervention by the Fed in the markets aimed at strengthening the US dollar would be likely to see a rise in the value of the USD/JPY.

This pair is considered to be a particularly good one for trading because the Bank of Japan has a lot of influence over the Tokyo market, creating trends and reversals. These will be opportunities for traders. Also, between 10 p.m. and 8 a.m. GMT, it is the most active open market as a result of global time zone differences.

To learn more about the impact of time zones on forex trading, continue here:

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