The USD/JPY is one of the most actively traded currency pairs in the world, representing the exchange rate between the U.S. dollar and the Japanese yen. It reflects the economic relationship between the United States and Japan, two major global financial powers. Often viewed as a key indicator of market sentiment and risk appetite, USD/JPY tends to strengthen when investors favor higher yields and weaken during periods of market uncertainty. Traders closely watch this pair for its sensitivity to interest rate differentials, central bank policies, and geopolitical developments in Asia and the U.S.