JPY/ZAR — Safe Haven vs Risk Asset
JPY is the world's second most prominent safe-haven currency after CHF. ZAR is a high-yield emerging market currency. In risk-off environments, JPY strengthens while ZAR weakens — producing sharp JPY/ZAR upward moves. In risk-on environments, the carry trade (sell JPY, buy ZAR) applies — unwinding this trade is a major source of JPY/ZAR volatility.
| Lot Size | Pip value (ZAR) | 50-pip move |
|---|---|---|
| 0.01 | R0.10 | R5.00 |
| 0.10 | R1.00 | R50.00 |
| 1.00 | R10.00 | R500.00 |
The JPY/ZAR Carry Trade
Japan has maintained near-zero interest rates for decades. South Africa's repo rate is currently 7.00% (May 2026). Borrowing JPY cheaply and holding ZAR-denominated assets to capture the yield differential is a classic carry trade strategy. When global risk appetite falls, carry traders close these positions — selling ZAR and buying JPY — causing sharp JPY/ZAR spikes. Bank of Japan policy changes can trigger massive carry trade unwinds.
Values are for educational purposes. Verify specifications with your broker before trading. Full pip value table →
