30 Jul 2021 22:54
SEK/JPY (Swedish Krona vs Japanese Yen)
The SEK/JPY currency pair is the cross rate against the U.S. dollar. There is no the U.S. dollar in this currency pair, nevertheless the greenback still affects it profoundly. To make it clear, just combine the USD/JPY and USD/SEK charts in the same price chart, and you will get the approximate SEK/JPY chart.
The Swedish krona and the Japanese yen are under the U.S. dollar enormous influence. Hence, for a more accurate prediction of the future rate of this currency pair, you should consider the key economic indicators of the economy of the United States. There are such indicators as the GDP, Producer Price Index (PPI), unemployment rate, trade balance and many others. Remember that the currencies listed above may respond in a different way to changes in the U.S. economic situation.
Sweden is one of the leading countries in the world that outclasses the other Nordic countries like Denmark, Norway, and Finland. The high economic development of this country is provided by the large mineral reserves, timber, and hydropower resources as well as the highly qualified specialists in all economic fields.
Besides, Sweden is one of world's leading manufacturers of engineering products, as well as the largest supplier of iron ore, steel, and paper. The majority of the Swedish products is sold abroad. That means that the export volumes may not only strengthen the economy, but also weaken it. Moreover, Sweden is deeply dependent on world prices on energy resources such as oil and gas that may provoke problems in the national economy in general and as a result the Swedish krona fluctuations.
SEK/JPY is extremely vulnerable to the change in the world's political or economic situation. Therefore, it is hard to predict movement of this currency pair, because its trend usually differs any analysis.
The beginning traders would better not to start their trading activity on Forex by dealing with this currency pair. That fact is that there are a lot nuances of the price chart behavior that can make an impact on the future rate.
Comparing to the major currency pairs such as EUR/USD, USD/CHF, GBP/USD, and USD/JPY, this one is relatively illiquid. That is why, when you make a forecast of the future movement of this financial instrument, you should primarily focus on those currency pairs that consist of the Swedish krona and the Japanese yen in tandem with the U.S. dollar.
Pay attention to the spread for the cross rates that is usually higher than for more popular currency pairs. So before you start working with cross currency pairs, read and understand the broker's conditions for this specified trade instrument.