Japan (JPY, Yen) Economic & Currency Analysis

Japan (JPY, Yen) Currency FX Analysis

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Short Term Rating Currency Ratings Help
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Long Term Rating Economic Ratings Help

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Japan SWOT Statistics

Strengths + Opportunities = 53

Threats + Weaknesses = 26

When strengths & opportunities substantially exceed threats & weaknesses an investment in the Yen has great long term potential.

The economy of Japan is the third largest in the world. Japan experienced rapid economic growth between the 1960s and 1980s, a period of time known as Japan’s post-war economic miracle. Japan ranked second in the world behind the People's Republic of China in tonnage of fish caught. Japan also maintains one of the world's largest fishing fleets, which accounts for nearly 15% of the global fishing catches. The many species of seafood caught include sardines, skipjack tuna, crab, shrimp, salmon, pollock, squid, clams, mackerel, sea bream, saury, tuna, and Japanese amberjack. Japanese manufacturing has a variety of high tech industries that are highly successful, they include: consumer electronics, automobile manufacturing, semiconductor manufacturing, optical fibers among others.


Yen Currency Analysis Update

Japan (JPY), the second largest economy in the world, has an industrial, export oriented economy that benefits from its relationship with the USA and proximity to China. Japan's Fundamental Currency Analysis (short term investment): Japan’s currency (the Yen) is overvalued according to investment flow potential, the purchase price parity, and the interest rate parity. Japan's Value Investor Survey (short term investment): Japan’s economic environment is moderately favorable for long term economic growth due to high scores on economic freedom and government transparency, but low scores on the SWOT Analysis. Japan's Currency Trading Strategy: An overvalued currency, low investment flow potential and moderate business environment leads to a negative outlook for Japanese investments.


Factors That Positively Affect The Yen


Factors That Negatively Affect The Yen

  • Declining Birth Rate The effects of a declining population can be adverse for an economy which has borrowed extensively for repayment by younger generations; however, a smaller human population has a smaller impact on...