EURJPY definition

EUR/JPY is the exchange rate between the euro and the Japanese yen, showing how many yen one euro will buy. It is the most heavily traded cross pair, accounting for about 1% of the roughly $9.6 trillion that moves through the global forex market each day (BIS Triennial Survey, 2025), which gives it solid liquidity and spreads that are tight for a non-dollar pair.

The euro is the base currency and the yen the quote currency, so a quote of 162.00 means one euro buys 162.00 yen. A rising price means the euro is strengthening against the yen, a falling price the reverse. You trade EUR/JPY as a forex CFD, taking a position on the rate rather than holding the currencies: go long if you expect the euro to rise, short if you expect it to fall. Since the yen is the quote currency, one pip is the second decimal place (0.01) rather than the fourth, and your gain or loss is the pips moved times your position size.

EUR/JPY hinges on the policy gap between the European Central Bank and the Bank of Japan, which historically ran far looser rates, so a widening gap tends to push the pair higher. It also carries a strong risk-sentiment signal: the yen is a safe haven that strengthens when markets sour, so EUR/JPY often rises in confident, risk-on conditions and falls when fear returns. That dual role as both a rate-spread and a sentiment gauge is why traders watch it so closely.