# USD/JPY pair being the exception?

#### Eric Alyea

##### Master Sergeant
What is the reason for the USD/JPY pair being the exception and only having two places right of the decimal (0.01)?

#### Lhar_fpa

##### Private, 1st Class
Me too, I wondering about it. =)http://static.iminent.com/toolbar/contents/images/emoticons/Messages/Cartoon%20Fish%20Emoticons/1.star.gif

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#### Eric Alyea

##### Master Sergeant

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).

#### Lhar_fpa

##### Private, 1st Class
Hmmm, I see. Still digesting what you have said. =)

#### Pharaoh

##### Colonel
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?