Exchange Rate Calculator

The exchange rate between the New Taiwan Dollar (TWD) and the Japanese Yen (JPY) has exhibited notable fluctuations over the past few months. This report provides an analysis of recent trends, underlying economic factors, and future projections to offer a comprehensive understanding of the TWD/JPY currency pair.

Recent Exchange Rate Trends

Over the past six months, the TWD/JPY exchange rate has experienced significant volatility. On January 7, 2025, the rate peaked at approximately 4.8332 JPY per TWD. Following this high, the rate declined, reaching a low of around 4.3360 JPY per TWD on April 21, 2025. This represents a depreciation of the TWD against the JPY by approximately 10.3% over this period. Subsequently, the TWD strengthened, with the exchange rate climbing to 4.9725 JPY per TWD by June 30, 2025. The average exchange rate during this six-month period was about 4.6662 JPY per TWD. (exchangerates.org.uk)

Economic Factors Influencing the Exchange Rate

Several economic factors have contributed to the observed fluctuations in the TWD/JPY exchange rate:

• Interest Rate Differentials: Differences in monetary policies between Taiwan and Japan have influenced capital flows. For instance, if Taiwan's central bank raises interest rates while Japan maintains a low-rate environment, the TWD becomes more attractive to investors seeking higher returns, leading to an appreciation of the TWD against the JPY.

• Trade Balances: Taiwan's robust export sector, particularly in technology and electronics, has bolstered demand for the TWD. Conversely, Japan's trade dynamics, including its import-export balance, have impacted the JPY's strength.

• Economic Growth: Taiwan's steady economic growth has enhanced investor confidence in the TWD. In contrast, Japan's economic challenges, such as deflationary pressures and an aging population, have affected the JPY's performance.

• Global Economic Conditions: External factors, including global economic slowdowns or geopolitical tensions, have influenced investor sentiment, affecting both currencies.

Technical Analysis

As of July 2, 2025, technical indicators suggest a bullish outlook for the TWD/JPY pair:

• Relative Strength Index (RSI 14): At 67.291, indicating buying momentum.

• Moving Averages: Short-term moving averages (MA5, MA10, MA20) signal a "Buy," while the MA100 indicates a "Sell," suggesting potential for continued upward movement.

• MACD (12,26): At 0.004, supporting a "Buy" signal.

These indicators reflect a period of strength for the TWD against the JPY, with potential for further appreciation. (investing.com)

Forecasts and Projections

Future projections for the TWD/JPY exchange rate vary among different sources:

• Short-Term Forecasts: For the current week, the rate is projected to average around 4.9729 JPY per TWD, with an estimated trading range between 4.9232 and 5.0227. The next week's forecast suggests an average rate of 4.9769, within a range of 4.9271 to 5.0267. (midforex.com)

• Long-Term Forecasts: Looking ahead, the estimated average rate for 2026 is 5.0450 JPY per TWD, with a projected range of 4.9441 to 5.1459. By 2030, the average rate is forecasted to reach 5.3432, within a range of 5.2364 to 5.4501. (midforex.com)

These projections suggest a gradual appreciation of the TWD against the JPY over the coming years.

Conclusion

The TWD/JPY exchange rate has demonstrated significant volatility over the past six months, influenced by various economic factors and market dynamics. Technical analysis indicates a bullish trend, with forecasts projecting a gradual appreciation of the TWD against the JPY in both the short and long term. Investors and businesses engaged in transactions involving these currencies should monitor these trends closely and consider the underlying economic indicators when making financial decisions.