Definition of Japanese Yen

Financial Terms Beginning with J

What is Japanese Yen

The Japanese yen, commonly referred to as the yen, is the official currency of Japan. The symbol for the yen is ¥ and its currency code is JPY, which stands for Japanese Yen. Currently, the yen is the third most traded currency in the foreign exchange market.

History of the Japanese Yen

In 1871, the Japanese yen was introduced by the Meiji government as part of the modernization of Japan's economy. The yen replaced the complex system of the Edo Period, which included the mon, a currency with a history dating back to the 8th century. The term yen translates to “round object" in Japanese, which was a fitting description for the round gold coins that were initially used.


Japanese Yen Banknotes and Coins

In the modern financial system, the yen is subdivided into 100 smaller units known as sen, although sen are no longer used due to inflation. The Bank of Japan is responsible for issuing yen banknotes while the Japan Mint produces the coins. Currently, the available banknotes are ¥1000, ¥5000 and ¥10000 and the circulated coins are ¥1, ¥5, ¥10, ¥50, ¥100 and ¥500.

Forex and the Japanese Yen

The yen is one of the major global currencies and a key player in the forex market, frequently paired with the US dollar (USD/JPY), Euro (EUR/JPY) and the British pound sterling (GBP/JPY). It is often viewed as a safe-haven currency, meaning that investors may flock to the yen during periods of economic or political uncertainty.

The value of the yen, like all currencies, fluctuates over time due to a variety of factors including inflation, interest rates, trade balances, political stability and the economic performance of Japan. Forex traders, investors and others closely monitor these factors as they can impact the exchange rate of the yen against other currencies.


Final Thoughts on the Japanese Yen

In summary, the Japanese yen is a significant global currency with a historical background that forms an integral part of Japan's economic structure and plays a critical role in global financial markets. Whether for forex trading, currency exchange or international trade, understanding the dynamics of the yen is important.

GlobEx Markets Financial Dictionary of Terms, Phrases and Concepts

The GlobEx Markets financial dictionary is a reference resource that provides the definitions and explanations of various financial terms, phrases and concepts that are used in international finance and global investing. It includes a broad range of financial terms, such as those related to stocks, bonds, currencies, commodities, options, futures, crypto and much more.

A financial dictionary can be useful for anyone who wants to learn more about finance and investing, or who works in the financial industry. It can help clarify the meaning of technical terms and the language used in financial publications, reports and other sources.

Benefits of the GlobEx Markets Financial Dictionary

There are several benefits to using the GlobEx Markets financial dictionary, including:

  • Clarifying Technical Terminology: The financial world is filled with complex terms and language that can be confusing to those who are not familiar with it. A financial dictionary can help clarify the meaning of technical terms and make them more understandable.
  • Improving Financial Literacy: By learning the meaning of financial terms, phrases and concepts, you can improve your overall financial literacy and gain a better understanding of the workings of the financial world.
  • Enhancing Communication: A financial dictionary can help improve communication among financial professionals by ensuring that everyone is using the same terminology, phrases and concepts.
  • Supporting Research: When conducting financial research or analysis, a financial dictionary can be a valuable resource for identifying and understanding key terms, phrases and concepts.
  • Facilitating Decision-Making: Understanding financial terms, phrases and concepts can help you make better-informed financial decisions, whether you are managing your own finances or making decisions on behalf of an organization.

Overall, the GlobEx Markets financial dictionary can help improve your understanding of international finance and global investing. It is a valuable tool for anyone who works in the financial industry or who wants to improve their financial literacy.

Related Investment Terms

British Pound Sterling


Liquidity Risk

View of NYC between the Brooklyn Bridge and Manhattan Bridge
New York, New York