Is there a specific reason why JPY pairs offer lower leverage? I’m on Oanda, so not sure if this is an across the board fundamental reason, or simply my broker issue.
The short answer is that lower leverage is offered on pairs having higher perceived risk for volatility, potentially resulting in disorderly markets. This is a judgement call on the part of individual brokers.
As for special circumstances currently affecting the yen pairs, you might want to refer to this LINK.
Maximum allowable leverage – and therefore required initial margin – are the same on yen pairs (except for AUD/JPY) at the two largest U.S. retail brokers, Oanda and Forex•com.
At both of those brokers, required margins are 4% (corresponding to 25:1 max. leverage) on CAD/JPY, CHF/JPY, EUR/JPY, NZD/JPY, and USD/JPY; and 5% (corresponding to 20:1 max. leverage) on GBP/JPY.
Oanda requires 4% margin on AUD/JPY, as well.
Forex•com, by comparison, requires 3% margin (corresponding to 33.3:1 max leverage) on AUD/JPY.
You can compare all the pairs offered by these two brokers at –
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