This currency pair is quite controversial, moreover, the volatility of this trading pair is high. The currencies in this pair are the opposite of each other. The Japanese economy, and accordingly the currency is pretty much stable, the Turkish lira is very unpredictable and is very dependable on the factors and Turkish economy.
The history of the TRY origin is short, compared to other currencies. It was originated and began its circulation in 1923, as the result of the reforms carried out by Kemal Ataturk. During some period, TRY was dependable from the British pound and the French franc.
After the Second World War, a one-dollar bill was worth almost three liras. This situation remains the same until 1960. In this year the devaluation of the Turkish lira led to the one-dollar being worth of 9 Turkish liras. But these times were not the worst. At the beginning of the 21st century, the Turkish national currency began to be called the cheapest currency in the world. This was because for a one-dollar bill you could receive one and a half million liras.
Measures were taken by the Central Bank in 2005. After those measures, the “new Turkish lira” was introduced. One new lira was worth one million previous liras. Finally, in 2009 the exchange rate of the national Turkish currency was stabilized.
Nowadays, Turkey is considered to be a country with an emerging economy. The country’s acceptance of the EU is not being considered. Counties of the organization don’t want Turkey to join them because of numerous reasons. Some of them are the fact that the political situation in the country is very unstable. Moreover, the US wants to sanction the country because of its military cooperation with Russia. Turkey has a lot to improve in order to get accepted to the European Union.
If to compare the Japanese yen with the Turkish lira, the first one is a much stable national currency. In the middle of the 20th century, the country’s economy improved greatly, which lead to the JPY taking a stable position on the worldwide currency market. And also, this currency is the second on the list of the reserve currencies, which means that it is second to only USD. Many organizations are interested in the Japanese yen. This is because the country produces a huge amount of goods for export. Also, the organization that is responsible for the issuance of this currency is the Central Bank of Japan.
Turkish lira and Japanese yen currency pair on the Forex market
In the TRY/JPY trading pair, the Japanese yen is the quote currency, which usually is in currency pairs. If the situation worsens in Turkey, this will lead to a decrease in the national currency paired with the yen, and vice versa. From the charts, it is understandable that this pair has high volatility, which is especially seen in short-term periods. If to take into account the long term, you will notice a downtrend.
This pair is attractive for newcomers, as well as professionals. But due to the fact that this pair has high volatility, there is a risk, which means that for newcomers this currency pair is not the best one to start with. When trading within this pair, it is best to do both, the fundamental and technical analysis. Usually, any changes and decisions in Turkey’s leadership impact directly the national currency.
