Also known as the ‘gopher’ the US Dollar and Japanese Yen is one of the most popular currency pairs with traders. The pair is seen as offering low spreads and follows a relatively smooth curve which makes it a good option if you’re looking for a relatively safe and low-risk option.

As with any major currency pair, though, this can be affected by wider socioeconomic events such as a fall or rise in a country’s GDP, inflation changes, variations in its cash rate, property bubbles and much more.

For example, let’s imagine the Federal Government decides to push up interest rates. The market might then start buying USD against other major currencies. While the EUR/USD pair might fall in value the USD/JPY would see improved yields thanks to the performance of the dollar.