EUR/JPY - is The Euro exchange rate against the Japanese Yen. Euros (the base currency) are quoted in terms of Japanese yen (the counter currency). Carry trades (when traders borrow in JPY to buy higher-yielding currencies, including EUR), which are historically low-yielding, are popular in the Yen because of its low yield. Whenever global economic performance is positive and the market is stable, investors prefer carry trades; when things are stressful, they avoid them. Therefore, EUR/JPY is susceptible to swings in broad market sentiment. In addition, the pair may also be affected by news flow relating to the Eurozone debt crisis and the extraordinary anti-deflation policy measures implemented by the Bank of Japan in 2013.