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How to Trade EUR/JPY on the Monthly Chart

Everything you need to know about trading EUR/JPY on MN — when it works, when it doesn't, and how to size your risk for this specific combination.

Reviewed by the Candleread desk · Updated 2026-04-09

The short answer

EUR/JPY on the MN (Monthly) timeframe is best suited for position traders. EUR/JPY has an average daily range of 110 pips and a typical spread of 1.5 pips. The best session for this pair is the London session + Asian–London overlap, where liquidity peaks and spreads tighten. On MN, each candle represents 43200 minutes of price action, producing about 0.033 candles per day.

Why EUR/JPY on MN?

Euro vs Japanese yen. Risk-sentiment barometer. One of the most volatile minor pairs. Wide daily ranges, sharp moves on ECB/BoJ divergence or global risk-off events. Popular with swing traders for its trend-following behavior on D1. On the Monthly timeframe: One candle per month. For yearly trend analysis and macro positioning. Almost no one trades on this timeframe — it's for context, not entries. Fund managers, macro analysts, and traders setting yearly directional bias. Typical hold time: 3-12 months.

EUR/JPY Key Stats

Here are the numbers that matter when trading EUR/JPY on MN:

  • •Category: minor pair
  • •Typical spread: 1.5 pips
  • •Average daily range: 110 pips
  • •Best session: London session + Asian–London overlap
  • •Timeframe: MN (Monthly) — position
  • •Candles per day: 0.033

The Monthly Timeframe Explained

One candle per month. For yearly trend analysis and macro positioning. Almost no one trades on this timeframe — it's for context, not entries. Monthly levels represent years of accumulated order flow. A break of a monthly level is a major structural shift. Used to identify the 'big picture' before zooming into lower timeframes.

How to Set Up a EUR/JPY MN Trade

  1. 1

    Check the higher timeframe trend

    Before entering on MN, check the next timeframe up for the trend direction. If you're trading MN, look at the W1 chart for bias.

  2. 2

    Identify key levels

    Mark support and resistance on the MN chart for EUR/JPY. Given the 110-pip average range, expect levels spaced 37–55 pips apart.

  3. 3

    Wait for your setup

    Whether you're trading breakouts, pullbacks, or bounces — wait for the setup, don't chase. On MN, patience means waiting for the right candle pattern at the right level.

  4. 4

    Size your position

    Use the position size calculator. Risk 1% of your account. With a typical stop of 44 pips on EUR/JPY MN, that determines your lot size.

  5. 5

    Manage the trade

    On MN, check the trade every once per day. Move stop to breakeven after 1R of profit. Let winners run to 2–3R.

When NOT to Trade This Combination

Avoid EUR/JPY on MN during the wrong session — EUR/JPY's best session is London session + Asian–London overlap and trading outside that window means wider spreads and lower volume. Also avoid right before and during high-impact news releases unless you specifically have a news-trading strategy. On MN, a single news candle can blow through your stop and target in seconds.

Key takeaways

  • ✓EUR/JPY on MN is a position setup with 110-pip average daily range
  • ✓Best session: London session + Asian–London overlap
  • ✓Always check the higher timeframe for trend direction before entering on MN
  • ✓Size positions using the 1% rule — calculator says the lot size, not your gut
  • ✓Spread of 1.5 pips matters more on shorter timeframes — factor it into your stop

Frequently asked

What is the best timeframe to trade EUR/JPY?+
It depends on your style. Scalpers use M5–M15, day traders use M15–H1, and swing traders use H4–D1. EUR/JPY has enough liquidity and tight enough spreads for all timeframes. The MN (Monthly) timeframe is best for position traders.
What is the average spread on EUR/JPY?+
On a good ECN broker, EUR/JPY typically has a spread of 1.5 pips. During London session + Asian–London overlap, spreads tighten further. During low-liquidity periods (Asian session for majors, holidays), spreads can widen 2–3x.
How many pips does EUR/JPY move per day?+
EUR/JPY averages about 110 pips per day. This is the Average Daily Range (ADR). On high-impact news days (NFP, CPI, central bank decisions), the range can be 1.5–2x normal.
Is EUR/JPY good for beginners?+
It can be. EUR/JPY has slightly wider spreads than the majors but still good liquidity. Beginners should start on H1 or H4 timeframes where the noise is lower.

Keep reading

Trade USD/JPY on MN

Trade GBP/JPY on MN

Trade EUR/USD on MN

EUR/JPY on other timeframes

Position size calculator

Pip value calculator