The 4 Main Ways to Buy Japanese Yen in 2026 | The Ultimate Strategy for Traveling and Investing at the Same Time

Recently, more and more people are buying Japanese yen, not just for travel to Japan, but because the yen itself has hedging and investment value. After a year of fluctuations, the TWD/JPY exchange rate has entered a relatively stable range. Whether you’re planning to travel abroad, shop via proxy, or take advantage of TWD depreciation for asset allocation, now is a good time. This article will compare four ways to buy yen to help you find the most cost-effective method.

Why is now the best time to buy yen? The yen becomes the preferred safe-haven asset

In the current environment of increasing global economic uncertainty, purchasing yen has become a priority for many Taiwanese investors. This is not just for travel needs but also reflects the yen’s core value as a safe-haven asset.

Everyday practical demand

Travel expenses remain the primary reason for buying yen. Popular destinations like Tokyo, Osaka, and Hokkaido still mainly accept cash (credit card usage is only about 60%), so travelers to Japan need to prepare yen cash in advance. Additionally, consumers who love Japanese cosmetics, fashion, and anime merchandise often pay directly in yen through proxy shopping or official websites, making yen purchases a daily necessity for online shoppers. Those planning to study or work in Japan also buy large amounts of yen in advance to lock in exchange rates and avoid short-term fluctuations.

Strategic financial investment significance

The yen is one of the three major safe-haven currencies globally (along with the US dollar and Swiss franc), benefiting long-term from Japan’s stable economy and low debt structure. During global market turmoil (such as geopolitical conflicts), funds tend to flow into yen for hedging. During the Russia-Ukraine conflict, the yen appreciated by 8% in a week, buffering stock market declines. For Taiwanese investors, buying yen is not only for daily needs but also as a hedge against Taiwan stock market risks.

Furthermore, the Bank of Japan is starting a rate hike cycle from the end of 2025 (currently at 0.75%), coupled with its ultra-low interest rate policy, attracting arbitrage trading. Many international investors borrow low-interest yen to convert into higher-yield currencies for arbitrage, boosting overall demand and the yen’s value.

Comparing 4 ways to buy yen | Cost analysis for small investors

Many think buying yen is just going to the bank, but different channels have varying exchange rates that could cost you thousands of TWD more. Here, we summarize the pros, cons, and costs of the latest four methods with examples.

Method 1: In-person cash exchange at bank counters | Traditional but most expensive

This is the most traditional way: carrying TWD cash to a bank branch or airport counter to exchange for yen cash. It’s straightforward and transparent, but uses the “cash selling rate” (usually 1-2% worse than the spot rate), making it more costly. Most recommend this only as a backup.

Some banks also charge fixed handling fees, making actual costs higher. Recent announcements show handling fees of about 100-200 TWD per transaction. Including the exchange margin, a 50,000 TWD purchase could lose about 1,500-2,000 TWD.

• Advantages: Safe, full denominations (1,000, 5,000, 10,000 yen), staff assistance on site
• Disadvantages: Worse exchange rate, limited to bank hours (weekday 9:00-15:30), handling fees apply
• Best for: Urgent or small amounts, unfamiliar with online methods

Method 2: Online FX exchange + in-person or ATM withdrawal | Flexible, preferred by investors

Use online banking apps to buy yen, transferring TWD into a foreign currency account, using the “spot sell rate” (about 1% better than cash rate). If cash is needed, you can withdraw at counters or ATMs, but there’s a one-time FX fee (around 100 TWD).

Advantages include 24-hour operation, ability to buy in installments at favorable rates (e.g., when TWD/JPY is below 4.80), reducing average costs. Compared to in-person purchase, costs can drop to about 500-1,000 TWD.

• Advantages: 24/7 access, dollar-cost averaging, better rates, can transfer yen into deposits/investments
• Disadvantages: Need to open a foreign currency account beforehand, withdrawal fees (5-100 TWD)
• Best for: Forex investors, those with foreign currency accounts, long-term holders

Method 3: Online FX purchase + airport pickup | Best pre-trip planning

No need for a foreign currency account. Fill in the purchase details online (currency, amount, pickup branch including airport locations, date), transfer funds, then pick up with ID and transaction notice at the counter. Banks like Taiwan Bank and Mega Bank offer this, with Taiwan Bank’s “Easy Purchase” online FX free of charge (using Taiwan Pay costs only 10 TWD), with about 0.5% better rates.

Ideal for travel planning: reserve pickup at Taoyuan Airport or other locations, saving the hassle of last-minute exchange. Estimated costs are only 300-800 TWD, much cheaper than in-person exchange.

• Advantages: Better rates, often no handling fee, flexible pickup locations, convenient timing
• Disadvantages: Need to book 1-3 days in advance, pickup during bank hours, branch cannot be changed
• Best for: Planned travelers, those wanting airport pickup

Method 4: Foreign currency ATM withdrawal | Fastest for urgent needs

Use chip-enabled bank cards at foreign currency ATMs to withdraw yen cash instantly. Supports 24-hour operation and interbank transactions (only 5 TWD cross-bank fee). Denominations are 1,000, 5,000, 10,000 yen, with daily and per-transaction limits varying (usually 50,000-150,000 TWD equivalent).

However, ATM locations are limited (~200 nationwide), and cash often runs out during peak times (like airports). Don’t wait until last minute. Cost is about 800-1,200 TWD, more than online but less than in-person.

• Advantages: 24/7 access, instant cash, flexible, low cross-bank fee
• Disadvantages: Limited locations and denominations, cash shortages at peak times
• Best for: Last-minute needs, no time for bank visits

Cost comparison table of four methods

Is now a good time to buy yen? Market timing analysis

Looking into 2026, the timing to buy yen depends on multiple factors. Over the past year, TWD/JPY appreciated over 8%, making current purchases quite profitable for Taiwanese investors, especially amid ongoing TWD depreciation pressures.

Market data shows a 25% increase in yen demand in Taiwan in the second half of the year, driven by travel recovery and asset hedging. The Bank of Japan has completed a rate hike cycle (current rate 0.75%, a 30-year high), and bond yields have risen to 1.93%, further boosting yen investment appeal.

Optimal strategy? Yes, but staggered. The yen exchange rate is currently fluctuating between 150-155. It’s advisable not to buy all at once but to buy in parts based on rate movements, averaging costs. Short-term volatility of 2-5% may occur during arbitrage closing; long-term holders should remain patient.

How to increase yen value after purchase? Diversified investment options

Once you’ve bought yen, don’t let the cash sit idle. Seek steady income or growth investments. Here are four common options suitable for small investors:

1. Yen fixed deposit: Conservative preservation

Open a foreign currency account at E.SUN Bank, Bank of Taiwan, etc., and transfer yen into a fixed deposit. Minimum 10,000 yen, with annual interest rates around 1.5-1.8%. Suitable for short-term travel savings or cash reserves.

2. Yen insurance policies: Medium-term growth

Buy yen savings insurance from Cathay Life, Fubon Life, etc., with guaranteed interest rates of 2-3%. Combines insurance and investment, suitable for 3-5 year funds. Early withdrawal may incur losses.

3. Yen ETFs: Growth on waves

Purchase ETFs tracking the yen index, like Yuanta 00675U, via stock apps. Management fee about 0.4%. Suitable for dollar-cost averaging and participating in yen appreciation.

4. Forex trading: Active trading

Trade yen currency pairs (USD/JPY, EUR/JPY) on professional forex platforms. Benefits include two-way trading, 24-hour access, low capital requirements. Risks are higher; requires basic trading knowledge.

Quick FAQs

Q: What’s the difference between cash rate and spot rate?
Cash rate is the rate banks offer for physical cash exchange, usually 1-2% worse than the spot rate, which is used in electronic transfers (T+2 settlement). Spot rate is more favorable but involves waiting. Buying cash yen uses the cash rate, which is more costly.

Q: How much yen can 10,000 TWD buy?
Depends on current rate. For example, at 4.85 TWD/JPY, 10,000 TWD ≈ 48,500 yen. At 4.87, about 48,700 yen. Actual rates fluctuate; check real-time quotes before purchase.

Q: What ID is needed for cash exchange?
For in-person exchange, bring ID + passport (or residence permit for foreigners). For company purchases, business registration documents. For online pre-order, transaction notice. Minors need parental consent; large amounts (>100,000 TWD) may require source declaration.

Q: Are there limits for ATM withdrawals?
Limits vary by bank. From October 2025, some banks restrict daily limits to 100,000 TWD for security. Typical daily limits are 50,000-150,000 TWD equivalent. Check with your bank before withdrawal. During peak times, cash may run out; plan accordingly.