Japanese Yen Futures

Japanese Yen Futures The Meiji government made the Yen the official Japanese currency in 1871 after years of an overly complex currency system in the Edo period. Yen literally means round object in Japanese. Ever since the Bretton Woods system collapsed and the monetary system switched to floating exchange rates, the value of the Japanese Yen has similarly floated ever since. However, because of its floating exchange rate, the Japanese Yen is considered extremely volatile. The Yen is the third-most-traded currency in the world, most likely due to the fact it is so undervalued compared to the US Dollar and British Pound.

Japanese Yen Contract Specifications
Contract Size12,500,000 Japanese yen
Contract Month ListingsSix months in the March quarterly cycle (Mar, Jun, Sep, Dec)
Settlement ProcedurePhysical Delivery
Daily FX Settlement Procedure
Final FX Settlement Procedure
Position Accountability10,000 contracts
Ticker SymbolCME Globex Electronic Markets: 6J
Open Outcry: JY
AON Code: LJ
Minimum Price Increment$.000001 per Japanese yen increments ($12.50/contract). $.0000005 per Japanese yen increments ($6.25/contract) for JPY/USD futures intra-currency spreads executed on the trading floor and electronically, and for AON transactions.
Trading HoursOpen Outcry (RTH): 7:20am-2:00pm CT
Globex (ETH): Sundays: 5:00pm – 4:00pm CT next day.
Monday – Friday: 5:00pm – 4:00pm CT the next day, except on Friday – closes at 4:00pm and reopens Sunday at 5:00pm CT.
CME ClearPort: Sunday – Friday 5:00pm – 4:15pm CT with a 45–minute break each day beginning at 4:15pm
Last Trade Date9:16 a.m. Central Time (CT) on the second business day immediately preceding the third Wednesday of the contract month (usually Monday).
Block Trade EligibilityYes.
Block Minimum150 Contracts
Exchange RulesThese contracts are listed with, and subject to, the rules and regulations of CME.
Source: CME

Japanese Yen Facts

Japanese Yen futures allow traders to assess value against the U.S. dollar, as well as the opportunity to address risk from currency fluctuations in other foreign trade markets.

Currency rates are determined by a one base currency quoted in relation to a different currency. Major currencies that are traded are floating. Central bank monetary policies can affect the value of currency. The Bank of Japan regulates monetary policy for its currency. For instance, low interest rates dictated as policy can be bearish for currency value because new money is being pumped into the market. This is unappealing to foreign investors because returns yield those low interest rates. In contrast, high interest rates set as policy are bullish and appealing to foreign investors because of high interest yields from the returns. Currency values can be also be affected by the nation’s current account balance. An excess or influx in the balance is considered to be bullish, while a deficit or drainage is considered to be bearish. Economic stability and investment in the country also help strengthen currency values because international investors are likely to buy into that country’s favorable markets.

Source: Barchart

Last updated May 2013

Additional Info

Japanese Yen News Articles

  • U.S. dollar holds gains against other currencies (10/1/2014) - The U.S. dollar continues to stand up to its fellow G-10 competitors.
  • Dollar climbs to fourteen-month high on possible interest rate hike (9/10/2014) - On Tuesday the U.S. dollar rose to its highest level in fourteen months against the euro as investors expected the Federal Reserve would increase interest rates sooner than initially forecasted.
  • Yen slips from three-week high (8/11/2014) - As conflict quiets in Ukraine and the U.S. shows signs of pushing back militants in Iraq, Japan's yen dropped from its three-week high on Monday.
  • Yen weakens as investors await market-moving indicators (7/29/2014) - According to The Wall Street Journal, the dollar was steady versus the yen, at 101.87. The pound gained 0.2 percent against the Japanese currency, to 173.00, while the euro climbed 0.1 percent higher against the yen, to 136.90. 
  • U.S. dollar strengthens against yen and British pound (7/25/2014) - After data showing a decline in weekly jobless claims, the U.S. dollar gained against the British pound and yen on Thursday.
  • Yen rises amid climbing Iraqi violence (6/16/2014) - The Japanese yen pushed higher as the trade week began as investors and traders sought the safety of the monetary unit of the Pacific Rim nation while violence escalated in Iraq, according to Bloomberg.
  • Yen dives against dollar after BOJ chief notes drive to boost inflation (6/13/2014) - The Japanese yen dipped against the world's reserve currency on Friday, pecking away at its weekly advance against its cross-Pacific rival after the leader of the Bank of Japan said the world's third-largest economy is moderately expanding, according to Bloomberg.
  • Yen rises against euro as BOJ prepares for Friday policy meeting (6/11/2014) - The Japanese yen notched a fourth-straight day of gains against the shared currency of the European Union during the midweek trading session as confidence continued developing about the Bank of Japan stopping short of expanding stimulus policy when its policy makers meet later this week, according to Bloomberg.
  • Yen climbs against dollar, euro before BOJ convenes (6/10/2014) - The Japanese yen edged up in value against the world's reserve currency and the euro on Tuesday in advance of the Bank of Japan convening a policy meeting later this week, according to published reports.
  • Dollar dips against yen (6/4/2014) - The world's reserve currency fell against the Japanese yen after marking earlier gains that pushed it to month-highs against the monetary unit of the Pacific Rim nation, according to Bloomberg.

Japanese Yen Blog Posts

  • Market Spotlight: US Dollar Index (10/10/2012) - The two key factors affecting a currency’s value are central bank monetary policy and the trade balance.
  • The US Dollar and Inflation (9/28/2012) - The US Dollar Index is a measure of the value of the United States Dollar compared to a basket of currencies weighted accordingly: Euro 57.6 % weight Japanese yen 13.6 % weight Pound sterling 11.9 % weight Canadian dollar 9.1 % weight Swedish krona 4.2 % weight Swiss franc 3.6 % weight The US Dollar... Read More.
  • Using Fibonacci to Find Trend Continuation Entries in Currency Futures (8/16/2012) - Currency futures can be a challenge to trade. Unlike some markets that see their best liquidity (and often the best moves) during US trading hours, currencies can see action almost any time of the day or night, and some of the best moves can occur when the "home market" is open-during Tokyo trading hours for the Yen or European hours for the Euro, Pound and Swiss.
  • Market Spotlight: British Pound (7/11/2012) - The British Pound (or pound sterling) is the world's oldest currency still in use dating back to Anglo-Saxon England in the middle 8th century. It's the official currency of the United Kingdom, its Crown Dependencies, and the British Overseas Territories.