The Japanese yen is often regarded as a “safe-haven” currency, providing stability when adverse risk events strike markets. Therefore, its price often fluctuates with the macroeconomic landscape – a factor made more complex with the US dollar’s role as the global reserve currency.

One of the most active central banks in the world, the Bank of Japan announcements concerning interest rates, quantitative easing, or – in the rare occurrence – direct currency intervention play a large role in its price relative to the US dollar.

Meets eight times a year on U.S. monetary policy and the key interest rate. Any change will impact the global macroeconomic landscape, including relative attractiveness of other countries’ currencies.

As the US’s fourth largest trading partner, a lot of capital flows naturally between the US and Japan. These flows can create a natural supply and demand for one currency over another.