Exchange Rate Calculator

The exchange rate between the New Taiwan Dollar (TWD) and the Japanese Yen (JPY) has experienced notable fluctuations over the past few months. Understanding these movements requires an examination of recent trends, underlying economic factors, and future projections.

Recent Exchange Rate Trends

In early January 2025, the TWD/JPY exchange rate reached a peak of approximately 4.8316 JPY per TWD on January 7. Following this high, the rate exhibited a downward trend, reaching its lowest point of 4.4725 JPY per TWD on March 10, 2025. This represents a depreciation of about 7.4% over a two-month period. The average exchange rate during this timeframe was around 4.6592 JPY per TWD.

Factors Influencing the Exchange Rate

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

• Economic Indicators: Taiwan's robust GDP growth and stable inflation rates have bolstered the TWD. Conversely, Japan's economic performance, characterized by low inflation and modest growth, has influenced the JPY's valuation.

• Monetary Policies: The Central Bank of the Republic of China (Taiwan) has maintained a relatively stable interest rate environment, supporting the TWD. In contrast, the Bank of Japan's prolonged low-interest-rate policy has exerted downward pressure on the JPY.

• Trade Balances: Taiwan's strong export sector, particularly in technology, has contributed to a favorable trade balance, strengthening the TWD. Japan's trade balance, affected by energy imports and global demand fluctuations, has impacted the JPY.

• Geopolitical Events: Regional tensions and global economic uncertainties have led to shifts in investor sentiment, affecting both currencies.

Technical Analysis

As of late March 2025, technical indicators suggest a bearish outlook for the TWD/JPY pair. The Relative Strength Index (RSI) is near the neutral level, indicating neither overbought nor oversold conditions. However, other indicators, such as the Moving Average Convergence Divergence (MACD), show bearish momentum.

Future Projections

Forecasts for the TWD/JPY exchange rate indicate potential fluctuations in the coming months. Some projections suggest a gradual appreciation of the TWD against the JPY, with rates potentially reaching around 4.79265 JPY per TWD by March 2026. Other forecasts anticipate a slight depreciation, with rates averaging around 4.4651 JPY per TWD by the end of 2025.

Conclusion

The TWD/JPY exchange rate has been influenced by a complex interplay of economic indicators, monetary policies, trade balances, and geopolitical events. While recent trends have shown a depreciation of the TWD against the JPY, future projections remain mixed, reflecting the dynamic nature of currency markets. Investors and businesses engaged in TWD/JPY transactions should closely monitor these factors to make informed decisions.