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 Size||12,500,000 Japanese yen|
|Contract Month Listings||Six months in the March quarterly cycle (Mar, Jun, Sep, Dec)|
|Settlement Procedure||Physical Delivery
Daily FX Settlement Procedure
Final FX Settlement Procedure
|Position Accountability||10,000 contracts|
|Ticker Symbol||CME 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 Hours||Open 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 Date||9:16 a.m. Central Time (CT) on the second business day immediately preceding the third Wednesday of the contract month (usually Monday).|
|Block Trade Eligibility||Yes.|
|Block Minimum||150 Contracts|
|Exchange Rules||These contracts are listed with, and subject to, the rules and regulations of 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.
Last updated May 2013
Japanese Yen News Articles
- Yen falls against U.S. dollar (12/6/2013) - The Japanese yen on Friday slipped against the world's reserve currency after the leader of an advisory panel said Japan's Government Pension Investment Fund should reduce domestic debt at once, according to Bloomberg.
- Yen marks third consecutive day of gains against dollar, shared currency (12/5/2013) - The Japanese yen climbed on Thursday against the world's reserve currency and the common currency of the European Union, marking a third-straight day of gains against both rivals, according to Bloomberg.
- Yen slips against greenback, euro after Chinese manufacturing data climbs (12/2/2013) - The Japanese yen marked a fourth-straight day of losses on Monday against the world's reserve currency after China released economic data noting manufacturing advanced last month, according to Bloomberg.
- Euro pushes ahead against dollar, yen after German pact (11/27/2013) - The shared currency of the European Union climbed to its highest level in more than four years against the Japanese yen on Wednesday, pushed higher by an agreement between lawmakers in Germany, the largest economy in the euro zone, according to Bloomberg.
- Yen notches first gains in four days against greenback (11/26/2013) - The Japanese yen marked its first climb in four days on Tuesday against the world's reserve currency after Bank of Japan minutes from last month's policy meeting indicated members of the policy are concerned about the Pacific Rim nation's economic outlook, Bloomberg reports.
- Yen loses value against U.S. dollar, shared currency (11/25/2013) - The Japanese yen dove toward its lowest value in six months against the world's reserve currency after negotiators notched a pact over Iran's nuclear ambitions, Bloomberg reports.
- Yen dips to four month low against greenback (11/22/2013) - The Japanese yen fell to its lowest rate in 120 days on Friday against the world's reserve currency after the Bank of Japan governor said the body he leads will work to minimize long-term yields' growth, according to Bloomberg.
- Yen heads toward third weekly loss against dollar (11/15/2013) - The Japanese yen continued its downward dive on Friday against its major rivals, including a third-straight week of losses against the world's reserve currency, Bloomberg reports.
- Aussie heads toward weekly gains against yen (11/15/2013) - The Australian dollar was heading toward a weekly advance against the monetary unit of Japan on Friday, Bloomberg reports.
- Yen drops against dollar after Japan note growth slowed (11/14/2013) - The Japanese yen on Thursday lost value against the world's reserve currency after the government of the Pacific Rim nation indicated third quarter growth advanced at a reduced pace, Bloomberg reports.
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) - This originally appeared as a blog post in Scott Hoffman’s Futures Insight Blog on Thursday, August 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,... Read More.
- 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.