Trade MXN/JPY
Mexican Peso / Japanese Yen
One of the highest-yielding carry crosses available, pairing Mexico's hawkish Banxico rates against Japan's ultra-low BOJ policy rate.
Specifications
About MXN/JPY
MXN/JPY is a carry-trade favourite that pairs the Mexican peso, backed by one of the highest real interest rates among emerging-market currencies, against the Japanese yen, historically one of the lowest-yielding G10 currencies. The rate differential generates substantial positive swap for long positions during calm markets. Like all carry crosses, MXN/JPY is vulnerable to sudden risk-off events that trigger yen buying and peso selling at the same time.
Key Price Drivers
- Banxico-BOJ rate gap driving daily swap income and carry-trade positioning
- Equity rallies and low VIX supporting MXN/JPY; risk-off shocks reversing carry fast
- USMCA exposure making the peso sensitive to US tariff and trade-policy shifts
- BOJ rate-hike acceleration strengthening yen and creating headwinds for MXN/JPY
Peak Trading Hours
MXN/JPY has two distinct liquidity windows, one during the Tokyo session and another during the New York session.
Tokyo session (00:00-06:00 UTC) and New York session (13:00-17:00 UTC)
Japanese data releases during Tokyo hours and Banxico decisions around 19:00 UTC are the main scheduled catalysts. Carry unwinds during Asian hours can produce overnight gaps for accounts holding positions through the Tokyo open.
How to Trade MXNJPY on StoicFX
Open an Account
Register for a live or demo account in minutes.
Fund Your Account
Deposit via bank transfer, card, crypto, or e-wallet.
Find MXNJPY in MT5
Open MetaTrader 5, search for MXNJPY in Market Watch, and add it to your chart.
Place Your Trade
Set your lot size, stop loss, and take profit, then execute your order.
FAQ
What is MXN/JPY?
MXN/JPY is an exotic carry cross that shows how many Japanese yen one Mexican peso can purchase. It is widely followed by carry traders because of the large interest-rate gap between Banxico and the BOJ.
How much swap can MXN/JPY earn?
The exact daily swap depends on your broker's overnight rates and the current Banxico-BOJ rate spread. When the differential is wide, long MXN/JPY positions can earn meaningful daily income. However, a single sharp yen rally can erase weeks of accumulated swap, so carry income should never be the sole reason for holding the position.
Why does MXN/JPY move so sharply during risk-off events?
In a sell-off, leveraged carry traders close their long MXN/JPY positions at the same time. The peso weakens as an emerging-market currency, while the yen strengthens as a safe haven. This simultaneous move on both sides creates fast, outsized drops.
What is the role of USMCA in MXN/JPY?
The United States-Mexico-Canada Agreement governs the trade framework between the three North American economies. Because Mexico sends roughly 80% of its exports to the US, any threat to renegotiate or weaken USMCA terms can hurt peso sentiment and push MXN/JPY lower.
Start Trading MXN/JPY
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CFDs are complex instruments and carry a high risk of rapid capital loss due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.