NOK/JPY shows how many Japanese yens can be converted into one Norwegian krone. NOK/JPY is exposed to intense volatility during the risk of inclusion/deactivation in the transaction. A large-scale easing program of the Bank of Japan has recently led to the significant weakness of the Japanese yen, but any unexpected global obstacles, combined with further instability in the eurozone, may lead to a decrease in the pair.
The Norwegian Krone is in free float since its fixed exchange rate was withdrawn in 1992. Then the Norwegian central bank was unable to control excessive speculation.
As in all currencies, economic development leads to price fluctuations in the Norwegian krone. Traders can trade the Norwegian krone if the value of the euro (EUR) is uncertain. Increased activity in NOK trading may increase the exchange rate. Changes in world crude oil prices are also affecting Norwegian kroner, as Norway is a leading exporter of oil in Western Europe.
Due to the difference in oil prices between Norway and other countries, one can see a systematic trend in the long-term dependence of the kroon exchange rate. Higher prices in Norway lead to a weaker crown in the long run. A steady increase in oil prices leads to higher prices for crowns. In the short term, you can see that the exchange rate of the krona is changing under the influence of international financial shocks, differences in percentages, and oil prices. Since the difference in interest rates for Norway is an endogenous variable, the relationship between the exchange rate of the krona and the difference in interest rates cannot be construed as a causal relationship.
There is a clear trend - changes in the value of the krona depend on events in international financial markets. Volatility in the foreign currency markets ensures the movement of the kroon exchange rate from month to month due to oil prices. One of the reasons for this may be that many international operators have recognized that a crown is a speculative object.
Krone has historically been a good investment, as Norway relies on one of Europe's most stable economies. Shipping, hydropower, fisheries, and manufacturing in Norway also contribute to the country's gross domestic product (GDP).
One of the critical political and monetary institutions in Japan is the Ministry of Finance. Its impact on currency management is more significant than the US Treasury, EU countries. Regardless of the gradual decentralization of decision-making. Ministry of Finance experts often report economic events that have a considerable impact on the Japanese currency. Such news includes interventions aimed at avoiding an undesirable increase/decrease in the yen.
The most important economic data for Japan are GDP, the Tankan survey (quarterly survey of business expectations), international trade, unemployment, industrial production, and money supply (M2 + CD).
A reasonable decrease in the yen, as a rule, leads to an increase in the securities of export-oriented companies, which tend to increase the overall stock index. The Nikkei/yen ratio sometimes changes when the Nikkei market opens, and the yen increases (affects USD/JPY), as traders' money is invested in assets denominated in yen.
Japan imports 1.2% of Norway's total exports, while Norway imports 6.9% of Japan's total exports. Most of the Norwegian exports are mineral fuels, oils, ore slag, and ash, while most of Japan's exports are vehicles other than rail or tram tracks.
The NOK / JPY currency pair is susceptible to various major political and economic events in the world. For this reason, the predictability of its price chart is mediocre. This is a reasonably typical case when the price of NOK/JPY goes in the opposite direction to the analysis.
Novice traders are not recommended to trade this pair since it is necessary to understand many of the subtleties and features of the behavior of the price curve about NOK/JPY.
This trading instrument is considered illiquid in comparison with major currencies such as EUR/USD, USD/CHF, GBP/USD, and USD/JPY. Therefore, when you predict the future trend of a currency pair, you need to pay attention to the main currency pairs, which include the US dollar.