What Crypto Traders Can Learn from Traditional Forex Pairs Like USD/JPY

What Crypto Traders Can Learn from Traditional Forex Pairs Like USD/JPY

You could say that trading crypto pairs and forex pairs are similar. Well, only in the sense that you trade one value against another strategically to make what you hope will be a gain.

In forex, the US Dollar and Japanese Yen are the second most popular trading pair. For several reasons, it isn’t necessarily one of the most risky trading pairs. Not as much can be said for any of the crypto trading pairs, but there are lessons to take from trading traditional forex pairs and applying them to crypto. 

Read on to find out more.

Why The USD/JPY Is The Second Most-Traded Forex Pair

USDJPY consistently ranks as the world’s #2 currency pairs by trading volume, second only to EUR/USD. It accounts for roughly 13–18% of global forex turnover, with about $1 trillion in daily trading through platforms such as Exness. That’s a massive share of the $7+ trillion per day forex market.

Economic Clout

The pair links the world’s largest economy (the United States) and third-largest (Japan). Heavy trade and capital flows between these economies create continuous demand. Both USD and JPY are considered reserve currencies and the backbones of global finance.

High Liquidity and Stability

USD/JPY is known for its deep liquidity and relatively steady price action. Massive participation by banks, funds, and investors creates tight spreads and more consistent, stable movements. It’s far better than less-liquid pairs. Traders can execute large orders with minimal slippage.

Safe-Haven Status

The Japanese yen is regarded as a ‘safe-haven currency’. Japan’s stable financial system – with its low inflation and current account surplus – gives JPY a reputation for strength in turbulent times. So, in risk-off scenarios such as market crises, investors buy yen, causing USD/JPY to fall.

Interest Rate Differential (Carry Trade)

Japan’s interest rates have been near-zero for decades. We all know the US absolutely can’t say the same. That fact encourages the classic “yen carry trade” – borrowing yen at low cost to invest in higher-yield USD assets. 

The sustained USD-JPY rate gap historically made this strategy profitable, boosting trading volumes. For example, at the start of 2024, the US-Japan interest spread was just over 4%, making USD/JPY longs attractive for yield.

The Other Traditional Forex Pairs and Why They’re Popular

USD/JPY is great, but there are other excellent trading pairs to learn from for cryptocurrency.

EUR/USD (Euro/Dollar)

This is the #1 most-traded pair, making up about 22–24% of the daily forex trading volume. It represents the two largest economic blocs – the Eurozone and the US – so it’s a benchmark for global markets. 

Enormous liquidity in EUR/USD leads to very tight spreads and efficient pricing. Traders favor it because fundamental drivers, such as ECB vs Fed interest rates, or EU/U.S. economic data, provide constant opportunities.

GBP/USD (British Pound/Dollar)

Also known as “Cable”, this pair historically links London and New York. It typically generates around 9–10% of daily turnover. GBP/USD is popular thanks to the UK’s large economy and London’s role in forex trading. It can be more volatile than EUR/USD.

USD/CHF (Dollar/Swiss Franc)

Nicknamed the “Swissie”, this pair is regarded as another safe-haven combination. Switzerland’s franc has a reputation for stability. Historically, it was more than 40% gold-backed. It also tends to strengthen during global crises. Traders use USD/CHF to hedge risk or speculate on European geopolitics. If you watch it, you’ll notice the franc often rises when Eurozone risks increase.

Lessons For Crypto Traders to Learn From The USD/JPY Pair

The behavior of USD/JPY in forex markets holds valuable lessons for crypto traders. Although crypto assets are a newer market, they are not isolated from global financial dynamics.

Global Risk Sentiment Matters

USD/JPY often becomes a gauge of market risk appetite. When investors sense a dip, they go to the yen, strengthening it, and USD/JPY falls. 

Crypto is no exception: a surging yen (USD/JPY dropping) often means traders are shedding risk, which can drag down crypto prices. Or, when USD/JPY is rising (yen weakening against a strong dollar), it indicates risk-on optimism, and we often see renewed buying in crypto markets.

Impact of Economic Indicators and Policy

Major economic news that moves USD/JPY will likely ripple into crypto. Central bank decisions are prime examples. When the US Federal Reserve raises or lowers rates, it shifts the USD/JPY rate by making the dollar more or less attractive relative to the yen. The same policy change can influence crypto.

A stronger USD from higher rates may hurt Bitcoin. Investors earn more yield in dollars, reducing crypto’s appeal. Or, rate cuts that weaken the USD can be bullish for crypto. In fact, we saw this happen in early 2025. 

After a key Fed policy announcement, Bitcoin’s trading volume spiked to $82 billion in a single day as crypto markets reacted to the shifting dollar liquidity conditions.

Technical Analysis and Key Levels

Highly liquid pairs like USD/JPY often respect technical patterns such as support and resistance levels. Huge numbers of participants watch certain price levels – such as multi-year support at ¥130 or a psychological level like ¥150 – so the pair’s price may bounce or stall there. 

Crypto markets, though more volatile, are increasingly following technical analysis now that more institutional traders are involved in the market.

Liquidity and Volatility

Forex and crypto have very different liquidity profiles. The forex market trades an astounding amount, reaching a high of $9.6 trillion per day in April 2025 vs about $300+ billion for the entire crypto market. This 25x difference in scale means large orders barely budge forex prices. Crypto, however, is different. A single big trade can jolt the market.

And we all know crypto is far more volatile. Daily swings of several percent are common for Bitcoin, whereas major forex pairs often move <1% per day. For example, typical volatility levels in crypto are around 15–30%. You don’t need as much discipline in trading with forex as with crypto, but if you’re using platforms such as Exness, you still need to have an understanding of the daily forex swings before you invest.

Carry and Funding Considerations

Forex traders love the USD/JPY pair partly for the carry trade. Crypto doesn’t have central bank rates, but there are analogous concepts. Funding rates on perpetual futures, staking yields, and lending rates for stablecoins can all create a cost or benefit to holding a position. 

Forex teaches that chasing carry yield works only if the underlying price remains stable. A trader earning a +5% USD-JPY interest differential can still lose if the yen suddenly appreciates by 5%. 

In crypto, traders might earn high staking APY or funding payments, but a swing in the token’s price can offset many days of yield.

The Most Successful Cryptocurrency Trading Pairs

In crypto, successful trading pairs are those with the highest liquidity, trading volume, and tightest spreads. As of late 2024 and 2025, we’re seeing a clear pattern: the top crypto pairs almost always involve USD-pegged stablecoins like Tether (USDT):

• BTC/USDT (Bitcoin/Tether)
• ETH/USDT (Ether/Tether)
• BNB/USDT (Binance Coin/Tether)
• SOL/USDT (Solana/Tether)
• XRP/USDT (XRP/Tether)
• ADA/USDT (Cardano/Tether)

These are high-market-cap altcoins paired with Tether. They regularly attract large volumes and are favored by day traders.

Stablecoins actually facilitate the majority of crypto trading by value. In 2025, Tether is involved in roughly 73% of all crypto spot trades. It regularly records over $90 billion in daily trading volume. That by far exceeds even Bitcoin’s $38+ billion daily volume.