Practice EURJPY carry trade and BoJ divergence setups — real data, free.Start Free →

✍️ FXAbsolute Research Team📅 Updated May 2026⏱️ 6 min read🏷️ EURJPY · EUR/JPY · Carry Trade · ECB · BoJ
EURJPY Backtesting

EURJPY Backtesting — Practice the Carry Trade Pair on 5 Years of Real Data

EURJPY rallied +4,000 pips (125→165) in 2022–2023 and crashed -2,000 pips in August 2024. Practice both regimes on real historical data. Pro plan.

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The Tour de France stage analogy

In the Tour, sprinters conserve energy on mountain stages; climbers save themselves on flat stages. Nobody attacks every kilometer. Position trading and trend following reward the same strategic patience: stay conservative in choppy, directionless markets (the flat stages), then commit when a clear macro trend develops (the mountain stage). Attacking every stage leads to abandoning the race before it counts.

EURJPY is the world's most prominent carry trade pair. Between 2022 and mid-2024, the ECB hiked rates from -0.5% to 4.0% while the BoJ held at -0.1% — creating a 4.1% interest rate differential that drove a textbook 4,000-pip carry trade rally. Then in August 2024, the BoJ's surprise rate hike triggered one of the most violent carry trade unwinds in forex history.

Both the rally and the crash are available to practice on FXAbsolute — making EURJPY one of the most educational pairs in the 2021–2026 dataset.

EURJPY Major Historical Moves

PeriodMoveDriverLesson
Jan 2022 – Jul 2023125 → 165 (+4,000 pips)ECB hikes 4.5%, BoJ holds at -0.1%Textbook carry trade trend — every H4 pullback was a buy
Jul – Sep 2023165 → 154 (-1,100 pips)BoJ YCC widening surprised marketsPractice managing sudden carry reversals
Oct 2023 – Jul 2024154 → 175 (+2,100 pips)Carry trade resumed as BoJ stayed ultra-looseRe-entry on the higher-low structure
Aug 2024175 → 153 (-2,200 pips in 2 weeks)BoJ surprise hike + global carry unwindManaging through extreme volatility events

EURJPY Key Statistics

MetricEURJPYEURUSDUSDJPY
Avg daily range100–180 pips60–100 pips50–90 pips
Typical spread0.5–2 pips0.1–0.5 pip0.2–0.8 pip
Best sessionLondon / NYLondon / NYTokyo / NY
Risk levelIntermediateBeginnerIntermediate
Carry trade rolePrimary carry pairNoneMajor carry pair

Backtest the 4,000-Pip EURJPY Carry Trade

5 years of real EURJPY data — the full ECB/BoJ divergence cycle. Pro plan.

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📝 Trader's Corner — real experience, no fluff

Position trading is where I went after scalping burned me out. The psychological shift is significant — a 3-week floating drawdown feels catastrophic when you're used to M5 results. But the clarity on D1 and H4 is real. The 2022-2023 macro moves were obvious on the daily chart. On M5 they looked like random noise. Sometimes "why am I losing" is answered by "you're looking at the wrong timeframe." Zoom out.

Frequently Asked Questions

Can I backtest EURJPY for free?
FXAbsolute Pro includes EURJPY for full backtesting on all timeframes. The 2022–2023 carry trade rally (+4,000 pips) and 2024 carry unwind (-2,200 pips) are both in the dataset.
What is the EURJPY carry trade?
The EURJPY carry trade involves borrowing JPY at near-zero BoJ rates and investing in EUR-denominated assets at higher ECB rates. The 4.1% rate differential in 2022–2023 drove EURJPY from 125 to 165 in an 18-month trend.
What is the EURJPY daily range?
EURJPY averages 100–180 pips per day — wider than EURUSD but less extreme than GBPJPY. ECB and BoJ meeting days can produce 200–400 pip single-day moves.
What drove EURJPY's major moves in 2022–2024?
The 4,000-pip rally was driven by ECB hiking aggressively while BoJ held negative rates. The August 2024 crash (-2,200 pips) came when BoJ surprised markets with a rate hike, forcing global carry trade unwinding.
Is EURJPY good for beginners?
EURJPY is intermediate difficulty. Its wide range requires wider stops than EURUSD, and BoJ intervention risk creates sudden sharp reversals. Practice on EURUSD or USDJPY individually first.