USD/JPY and EUR/JPY Trading Drives June Japanese Forex Volumes

The Financial Futures Association of Japan has revealed the monthly figures for over-the-counter foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term trading activity during the month of June. The figures were reported materially higher when compared to May, with the total trading volume rising 25 percent to ¥529 trillion ($4.28 trillion).

The most notable increases in trading activity came from the major Japanese yen crosses - the USD/JPY, which added 32.3 percent in June and the EUR/JPY which added just over 50 percent last month. In light of recent moves on the Chinese stock market and the Greek debacle this doesn’t come as a big surprise.

The USD/JPY added 32.3 percent in June while trading in EUR/JPY shot higher by over 50 percent

The safe haven status of the Japanese yen has played an important role throughout the month as increasing global uncertainty prompted a liquidation of carry trades.

Activity in the British pound has declined materially in June after a seasonal boost the GBP/JPY and GBP/USD pairs got from the U.K. elections in May.

Looking at the Japanese yen carry trade, the liquidation of positions was apparent with the number of short Japanese yen positions dropping 25 percent, while at the same time long Japanese yen trades increased by 32.9 percent.

The rise in June more than offsets the overall decline in trading volumes registered in May. The Japanese industry remains buoyant as the over-the-counter Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term part of trading activity appears to have bottomed out in May.

There are challenges to the outlook ahead however, as the typical summer lull settles over the foreign exchange market. Trading volumes are typically much lower in July and August due to the summer holidays season, when a number of traders take a break.