Beginner's Guide to Yen Investment: The Most Comprehensive Currency Exchange Plan and Cost Comparison for 2025

December 10, 2025, the TWD to JPY exchange rate reaches 4.85, up 8.7% from the 4.46 at the beginning of the year. Against the backdrop of TWD facing depreciation pressure and rising global risk aversion demand, the Japanese Yen has become the top choice for Taiwanese retail investors to allocate foreign currency assets. Meanwhile, the MYR to TWD trend also fluctuates, but as one of the world’s three major safe-haven currencies, the Yen’s stability and appreciation potential still hold advantages.

This article will deeply analyze all channels for exchanging JPY and reveal the true costs of each method with real-time data.

Why is JPY worth allocating? Not just for travel currency

The role of the Yen is changing. Besides traditional needs such as travel, purchasing on behalf of others, and studying abroad, financial investors are increasingly valuing the Yen’s safe-haven properties.

Certainty of the safe-haven currency

Japan’s economy is stable in size, and although government debt is high, its structure remains healthy, placing the Yen among the world’s top three safe-haven currencies (alongside USD and CHF). During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, while global stock markets fell 10%. For Taiwanese investors, holding Yen is like buying insurance against Taiwan stock market volatility.

Appreciation space brought by the rate hike cycle

The Bank of Japan’s Governor Ueda Kazuo recently issued hawkish comments, with market expectations that the December 19, 2025 meeting will raise interest rates to 0.75% (a 30-year high). Japanese government bond yields have hit a 17-year high of 1.93%. This means the yield on Japanese fixed deposits has risen to 1.5-1.8%, far surpassing TWD. Meanwhile, USD/JPY has fallen from the high of 160 at the start of the year to around 154.58, with short-term fluctuations possibly reaching 155, but the medium- to long-term trend is forecasted to stay below 150—providing positive support for investors holding Yen.

The double-edged sword of arbitrage mechanisms

Japan’s long-standing low interest rate policy (once at 0.5%) has created a “funding currency” role. Many arbitrage traders borrow Yen to convert into high-yield USD or other assets. However, when global risks increase, these positions face liquidation pressure, potentially causing short-term Yen fluctuations of 2-5%. Therefore, staggered entry is a necessary risk management strategy.

Four main channels for exchanging JPY: cost comparison with real data

Suppose you want to exchange 50,000 TWD; each of the following four methods has its pros and cons.

Option 1: Over-the-counter cash exchange — most traditional but highest cost

Carrying TWD to a bank or airport counter to exchange cash, using the “cash selling rate” (which is 1-2% worse than the spot rate).

Using Taiwan Bank’s rate on December 10, 2025 as an example, the cash selling rate is approximately 0.2060 TWD per Yen. Exchanging 50,000 TWD yields about 242,718 Yen. Some banks charge fixed handling fees:

Assessment: Cost for 50,000 TWD is about 1,500-2,000 TWD loss. Suitable only for urgent airport needs or unfamiliar with online methods.

Option 2: Online exchange + in-person withdrawal — moderate cost, flexible in batches

Use bank app or online banking to convert TWD to Yen in a foreign currency account, using the “spot sell rate” (about 1% better than cash rate). If cash is needed, go to a counter or foreign currency ATM to withdraw, incurring additional exchange spread fees (usually starting at 100 TWD).

For example, E.SUN Bank allows online exchange and in-person Yen cash withdrawal, paying the difference between spot and cash rates. This method’s advantage is observing exchange rate trends, allowing you to buy in batches at low points (e.g., below 4.80) to average costs.

Assessment: Cost for 50,000 TWD is about 500-1,000 TWD. Suitable for experienced forex investors planning long-term holding.

Option 3: Online currency exchange + airport pickup — best cost-performance

No need to open a foreign currency account in advance. Simply fill in amount, branch, and date on the bank’s official website or app, then bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay via Taiwan Pay, only 10 TWD), with a 0.5% exchange rate advantage.

Maximum convenience: Taoyuan Airport has 14 Taiwan Bank branches, 2 of which are open 24 hours. You can complete the exchange reservation 2-3 days before departure and pick up at the airport.

Assessment: Cost for 50,000 TWD is about 300-800 TWD. This is the best plan for pre-trip currency exchange.

Option 4: Foreign currency ATM withdrawal — most immediate but limited locations

Use a chip-enabled bank card to withdraw Yen at foreign currency ATMs, operational 24/7, with a cross-bank fee of only 5 TWD. E.SUN Bank’s foreign currency ATMs have a daily limit of 150,000 TWD (deducted from a TWD account), with no exchange fee.

However, the total number of ATMs nationwide is about 200, with limited availability, especially during peak times (like airports), where cash may run out. Also, Japan’s ATM withdrawal services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus).

Assessment: Cost for 50,000 TWD is about 800-1,200 TWD. Suitable for urgent, temporary needs without counter access, but not recommended as the main channel.

Summary table of four options:

Core advice: For budgets of 50k-200k TWD, the best strategy is a mix of “online exchange + airport pickup” combined with “occasional foreign currency ATM withdrawal”.

Is now a good time to enter? Batch strategy analysis

Current exchange rate trend: upward momentum but still volatile

The TWD/JPY at 4.85 indicates an 8.7% appreciation year-to-date. In the second half, Taiwan’s forex demand increased by 25%, mainly from travel recovery and risk hedging. However, the Yen remains in a fluctuation range.

Based on central bank and forex market forecasts, the US rate cut cycle supports the Yen, while expectations of BOJ rate hikes push up Japanese bond yields. USD/JPY may fluctuate between 154-155 in the short term, with a medium- to long-term forecast below 150—favorable for Yen holders.

Necessity of staggered entry

Although current timing isn’t bad, considering arbitrage position unwinding risks (which could cause 2-5% volatility), a “laddered buying” approach is recommended:

• First batch (30%): Execute online exchange immediately at 4.85 to lock in current rate
• Second batch (40%): Set target at 4.80-4.82, buy in two installments
• Third batch (30%): Keep flexibility; if rate rises above 4.90, pause and wait for a pullback

This approach helps average the entry price around 4.83, more stable than a one-time full exchange.

After acquiring Yen: investment options overview

Don’t let Yen sit idle after exchange. Here are four suitable options for small-scale beginners:

1. Yen fixed deposit — low risk, steady growth

Open a foreign currency account and set up a fixed deposit online. Major banks like E.SUN and Taiwan Bank support this, with minimums starting at 10,000 Yen and annual interest rates of 1.5-1.8%. For example, a 100,000 Yen deposit (about TWD 2,000) yields 1,500-1,800 Yen annually.

2. Yen insurance policies — medium-term guaranteed returns

Companies like Cathay Life and Fubon Life offer Yen savings insurance with guaranteed interest rates of 2-3%, with payment periods typically 6-10 years. Suitable for those wanting medium-term locking of returns without concern for exchange rate fluctuations.

3. Yen ETFs — participate in market growth

ETFs like Yuanta 00675U, 00703 track Yen indices, tradable via brokerage apps. Management fees around 0.4%, suitable for dollar-cost averaging and swing trading. Compared to fixed deposits, ETFs offer liquidity and leverage options.

4. Forex trading — active short-term gains

Trade USD/JPY, EUR/JPY on platforms like Mitrade. Zero commission, low spreads, 24/7 trading, with tools for stop-loss, take-profit, trailing stops. Ideal for capturing short-term volatility but requires basic technical analysis skills.

Risk warning: While Yen is a safe-haven, it still experiences two-way fluctuations. Global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) could temporarily weaken Yen. Diversify assets rather than going all-in.

Quick FAQ

Q1: What’s the difference between cash rate and spot rate?

Cash rate is the exchange rate banks offer for physical cash exchange, usually 1-2% worse than the spot rate. Spot rate is the market’s standard exchange rate used for T+2 settlement (electronic transfers, foreign currency accounts), more favorable but involves waiting.

Q2: How much Yen do I get for 10,000 TWD?

Using Taiwan Bank’s December 10, 2025 rate, cash selling rate of 4.85, 10,000 TWD exchanges to about 48,500 Yen; using the spot rate (~4.87), about 48,700 Yen—difference roughly 200 Yen (about TWD 40).

Q3: What do I need to bring for counter exchange?

Taiwanese citizens: ID card + passport. Foreigners: passport + residence permit. If pre-booked online, also bring transaction notice. Under 20? Need parental consent and ID. Exchanging over 100,000 TWD may require source of funds declaration.

Q4: What’s the limit for foreign currency ATM withdrawals?

From late 2025, limits are adjusted: CTBC Bank equivalent of TWD 120,000/day; Taishin Bank TWD 150,000/day; E.SUN Bank TWD 50,000 per transaction, TWD 150,000 per day. RMB withdrawals limited to TWD 20,000 per transaction. Cross-bank withdrawal limits depend on issuing bank, with a 5 TWD fee per transaction. Consider splitting withdrawals or using your own bank card to save fees.

Summary: Two principles for Yen allocation

Yen is no longer just for travel pocket money but a versatile asset for hedging and appreciation. In the face of TWD depreciation pressure and rising global risks, allocating some Yen is a wise move.

Core strategy: staggered exchange + post-exchange planning.

Beginners should start with “Taiwan Bank online exchange + airport pickup,” then gradually explore online exchange, fixed deposits, ETFs, etc. This approach allows cost-effective travel and added protection during market turbulence. Compared to MYR, Yen’s safe-haven status and rate hike potential remain advantageous. Seize the current rate of 4.85 with phased deployment—it’s the best move.