Forex glossary
EUR/JPY
EUR/JPY states Japanese yen per euro. EUR is the base currency and JPY the quote currency, with no USD leg. Pip size, volume and result conversion must be established for the instrument; its name does not imply fixed volatility or reliably clear trends.
Illustrative example
How does it work in practice?
In a hypothetical long position of 1,000 EUR, EUR/JPY rises from 160.00 to 160.10 JPY per EUR. The price gain is 100 JPY with no costs, before conversion into the account currency.
A case to work through
A pip and the euro quantity
Model: exposure is 2,500 EUR, a pip is 0.01 JPY/EUR and the move is 8 pips, without costs.
- One pip is worth 2,500 × 0.01 = 25 JPY.
- Eight pips change the valuation by 200 JPY.
What follows? Always state the currency of pip value.
Example boundary: The assumed pip does not replace the platform’s point specification.
A useful distinction
EUR/JPY / Pip
A pip is a price-movement unit; EUR/JPY identifies the currencies of that price.
Check your understanding
Calculate the cash value of an assumed pip.
Show the answer and explanation
60 JPY
1,200 × 0.01 × 5 = 60 JPY.
Pair units and result currency
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Related terms
Sources and documentation
- ECB: euro reference exchange rates
Currency units and reference quotations, not executable prices or invented case datasets.
- OANDA Corporation: Do you offer micro lots?
OANDA Corporation documentation states the 100,000, 10,000 and 1,000 base-unit convention and distinguishes unit-based from lot-based volume entry.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.