SEK/JPY Chart – Swedish Krona to Japanese Yen
At first glance, the Swedish krona doesn’t attract traders so much, as it is in the sidelines of euro, the main European currency, and of many other world currencies. SEK is a member of the so-called group of Scandinavian currencies along with the Norwegian krone (NOK) and the Danish krone (DKK). Accordingly, the behavior of the Swedish krona on the Forex market largely depends on the "co-brothers", who, in turn, are tied to the economies of their countries.
The Swedish krona was introduced into circulation in 1873, it was then that the Scandinavian monetary union was formed, which existed until 1914. Until 1873, another currency was circulated in Sweden - riksdaler. The etymology of the name krona is quite simple and comes from the word "crown". When the Scandinavian Monetary Union ceased to exist, all its members left the word krona in their currency names.
Scandinavia nods to the practice, which is why you can observe the king’s portrait on the head side of the coin and on the tail side a historical coat of arms of Sweden or just an image of the crown. As a rule, from the coin you can read the king's motto.
The Swedish economy, on which the crown exchange rate depends, has its own characteristics. The bulk of production is tied to the private sector, although thanks to iron ore reserves, the economy is considered to be based on raw materials. In addition, the state’s raw material wealth is connected with forest land and forest industry. The Japanese yen is one of the most popular currencies on the Forex market, it has full power over the economy of this South Asian country. The yen ranks third among world reserve currencies, second only to the US dollar and the euro currencies. The monetary unit of Japan entered into circulation in the Meiji era in the second half of the 19th century, before that the country had so-called clan money in circulation, and there were more than a thousand of them. The yen was initially connected to gold, although the gold standard was canceled several times and introduced depending on a particular stage of economic development. The yen received the status of an international currency in 1953. Until 1971, the yen was connected to the US dollar. Subsequently, several currency revaluations were made, and the value of the yen increased significantly. The yen has always been considered the second most important after the US dollar as a reserve currency. According to some expert estimates, today the share of the Japanese yen in the gold and foreign exchange reserves of states is approaching 4%.
A pair of Swedish krona and the Japanese yen on Forex
The Swedish krona (SEK) appears to be a commodity currency, but is more dependent on its neighbors, Norway and Denmark. All Scandinavian currencies have a high degree of correlation. Therefore, during trading, it is necessary to monitor the level of oil prices, trends in relation to other currencies, only then it will be possible to get a complete picture.
Since yen is a freely convertible currency, its market rate depends on supply and demand. According to economists, Japanese currency accounts for about 12% of the total turnover. The main actions in Japanese currency occur during the Asian trading session. It should be noted that, unlike the standard quotation, 0.0001 (four-digit) and 0.00001 (five-digit), quotes with the Japanese yen are always two characters less.
The SEK/JPY pair is considered exotic, it is quite volatile, and can attract experienced traders who are used to trading the Japanese yen. Many organizations of the world cooperate with Japanese companies, for this they acquire the country’s national currency in order to buy goods, so the yen will always be popular.
