How pip value is calculated for EUR/JPY
EUR/JPY is a cross: neither currency is the US dollar. One pip on a standard lot is worth 0.01 × 100,000 = 1,000 JPY, converted to US dollars by dividing by the USD/JPY rate. At USD/JPY 148.00 that is $6.76. The pip value moves with USD/JPY, not with the EUR/JPY price.
Yen pairs are quoted to two decimal places, so a pip is 0.01 rather than the 0.0001 used for most other pairs.
Worked example
An account of $10,000.00 risks 1% on a EUR/JPY trade with a stop loss 30 pips from entry. Assumes USD/JPY at 148.00, an example rate.
- 1. Risk amount: $10,000.00 × (1% ÷ 100) = $100.00
- 2. Pip value per standard lot: 0.01 × 100,000 ÷ 148.00 = $6.76
- 3. Position size: $100.00 ÷ (30 pips × $6.76) = 0.49 lots
Most brokers accept lots in steps of 0.01, so round down to 0.49 lots. If the stop loss is hit, the loss is about $99.32, before spread, commission and any slippage.
These are the calculator's default inputs above, so its result matches.