How pip value is calculated for USD/JPY
USD/JPY is quoted in JPY, so one pip on a standard lot is worth 0.01 × 100,000 = 1,000 JPY. To turn that into US dollars, divide by the USD/JPY rate itself: at 148.00 that is $6.76. The USD pip value therefore moves with the price: it falls when USD/JPY rises and rises when it falls.
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 USD/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.