USDJPY is the abbreviation for the U.S. Dollar and Japanese Yen currency pair. Trading the two is also known as trading the "gopher." It is regarded as the second most actively traded currency pair after the EURUSD. The interest rate differential between the Federal Reserve (Fed) and the Bank of Japan (BoJ) affects the value of USDJPY when compared to each other. Additionally, correlations between the U.S. and Asian equity markets are a key determinant of the exchange rate. The pair has a positive correlation with the USDCHF and USDCAD currency pairs as they all apply the U.S. dollar as the base currency. The pair has the largest range of traders among the majors and also tends to trade with a higher degree of volatility across all trading sessions.