NZDJPY definition

NZD/JPY shows how many Japanese yen one New Zealand dollar will buy. It is a cross rate, traded directly rather than via the US dollar, and it is one of the market's best-known carry trades, pairing a higher-yielding currency against a traditional funding currency. Liquidity is reasonable for a cross, with spreads wider than the majors, and the pair has no common nickname.

The New Zealand dollar is the base currency and the yen the quote currency, so a quote of 91.00 means one New Zealand dollar is worth 91.00 yen. A rising price means the kiwi is strengthening against the yen, a falling price the reverse. You trade NZD/JPY as a forex CFD, speculating on the price rather than swapping currency outright: go long if you expect the kiwi to rise, short if you expect it to fall. Because the yen is the quote currency, a pip is the second decimal place (0.01), and your result is the pips gained or lost multiplied by your position size.

As a carry pair, NZD/JPY lives and dies by risk appetite: traders borrow cheaply in low-yielding yen to hold the higher-yielding kiwi, so the pair tends to grind higher when markets are calm and confident, then drop sharply when sentiment turns and those carry trades unwind. The interest-rate gap between the Reserve Bank of New Zealand and the Bank of Japan sets how rewarding the carry is, and sudden shifts in global risk can move the pair faster than either central bank.