# USD/JPY pair being the exception?

Discussion in 'Beginners Bootcamp' started by Eric Alyea, Nov 8, 2009.

1. ### Eric Alyea Master Sergeant

Joined:
Jun 16, 2008
Messages:
365
3
What is the reason for the USD/JPY pair being the exception and only having two places right of the decimal (0.01)?

2. ### Lhar_fpa Private, 1st Class

Joined:
Sep 8, 2009
Messages:
135
0
Me too, I wondering about it. =)http://static.iminent.com/toolbar/contents/images/emoticons/Messages/Cartoon%20Fish%20Emoticons/1.star.gif

#2
Lasted edited by : Aug 15, 2015
3. ### Eric Alyea Master Sergeant

Joined:
Jun 16, 2008
Messages:
365
3

All major currencies, except the Japanese yen, are priced to four decimal places. In such case, a pip is one unit of the forth decimal point, or 1/100th of one percent.

For the Japanese yen, a pip refers to one unit in the second decimal point, for the reason that the yen is much closer in value to one hundredth of other major currencies.

In the case of the USD/JPY pair, only two decimal places are used because the JPY is so cheap compared to the dollar. One pip doesn't necessarily mean 0.0001 for all currency pairs... A pip is dependent on the currency pair we are talking about. Another example of a "cheap" currency pair is the USD/KRW (Korean Won).

4. ### Lhar_fpa Private, 1st Class

Joined:
Sep 8, 2009
Messages:
135
0
Hmmm, I see. Still digesting what you have said. =)

5. ### Pharaoh Colonel

Joined:
Oct 3, 2007
Messages:
19,679
2,228
No fair googling it before I can give an answer.

Pretty much, look at the value of a Yen. It's about 1 cent. Taking it out to 4 places would be a pretty wild ride on the charts. Four decimal pricing on the Yen would be the equivalent of 6 decimal pricing on USD pairs.

Of course, we've got a growing number of brokers offering 5 decimal pricing (3 on JPY). Anyone want to wager how long until some broker starts an ad campaign around 6 decimal pricing?

•
Title
Replies Views
Last Message
1. Locked

Replies:
0
Views:
112

Replies:
4
Views:
189

Replies:
7
Views:
429

Replies:
13
Views:
471
5. ### Where to start?

Replies:
21
Views:
995
•
Title
Replies Views
Last Message

Replies:
30
Views:
2,564

Replies:
78
Views:
1,765

Replies:
19
Views:
1,564

Replies:
14
Views:
1,470

Replies:
4
Views:
889

Replies:
1
Views:
689

Replies:
4
Views:
620

Replies:
6
Views:
612

Replies:
5
Views:
601
10. ### We'll Credit Your Account With \$251

Replies:
1
Views:
490
•
Title
Replies Views
Last Message

Replies:
603
Views:
56,424

Replies:
807
Views:
67,689

Replies:
0
Views:
175

Replies:
0
Views:
33

Replies:
0
Views:
38

Replies:
53
Views:
4,687

Replies:
78
Views:
1,765

Replies:
272
Views:
29,624

Replies:
2
Views:
361

Replies:
17
Views:
4,785