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

  • Yen edges down against most top peers (4/21/2014) - The Japanese yen slipped in value on Monday against 15 of 16 of its top rivals after the finance ministry noted the nation's trade deficit grew more than forecast last month, according to Bloomberg.
  • Dollar holds gains against rivals (4/15/2014) - The world's reserve currency edged up in value against many of its major rivals on Tuesday amid growing optimism, according to Reuters.
  • Yen pushes ahead against most major peers (4/10/2014) - The Japanese yen climbed on Thursday against most of its top rivals after disappointing Chinese economic data about imports and exports spurred demand for the safe-haven monetary unit, according to Bloomberg.
  • Yen drops against greenback (4/9/2014) - The Japanese yen dipped in value on Wednesday against the world's reserve currency, according to Bloomberg.
  • Yen rises against greenback following BOJ policy meeting (4/8/2014) - The Japanese yen marked advances on Tuesday against the world's reserve currency after the nation's central bank decided to leave economy-spurring stimulus measures unchanged, according to Bloomberg.
  • Dollar Index pushes higher as Labor Department prepares jobs data (4/4/2014) - The U.S. Dollar Index drove to its highest mark in about five weeks on Friday, propelled higher by anticipation about robust jobs data in the U.S. labor market last month, according to Reuters.
  • Dollar achieves slight gains against yen (4/2/2014) - The world's reserve currency edged up in value against the monetary unit of Japan early in trading on Wednesday, in advance of the U.S, releasing job market data, according to Bloomberg.
  • Yen slips against greenback following Fed chief remarks (4/1/2014) - The Japanese yen on Tuesday lost value against the world's reserve currency after commentary by U.S. Federal Reserve chief Janet Yellen noted the importance of relaxed monetary policy, according to Reuters.
  • Yen endures losses against greenback, euro (3/24/2014) - The Japanese yen slumped on Monday against the shared currency of the European Union and the world's reserve currency after a global regulator indicated the gradual recovery of the world economy was clear, according to Bloomberg.
  • Aussie continues rising against dollar (3/24/2014) - The Australian dollar climbed on Monday against the world's reserve currency, continuing to push ahead after performing strongly last week against its cross-Pacific rival, 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.