The currency of Japan is the Japanese Yen, abbreviated as JPY. The yen is one of the most widely traded currencies in the world and is recognized by the symbol "¥." It is the official and sole currency used in Japan for all financial transactions, both domestically and internationally.

Key features and facts about the Japanese yen include:

1. Denominations: The yen is available in both coin and banknote denominations. Coins are issued in values of ¥1, ¥5, ¥10, ¥50, ¥100, and ¥500. Banknotes are issued in values of ¥1,000, ¥2,000 (although these are relatively rare), ¥5,000, and ¥10,000.

2. Historical Significance: The yen has a rich history dating back to the late 19th century when it was officially adopted as Japan's currency during the Meiji Restoration. The word "yen" itself means "round" or "circle," which is a reference to the round shape of the coins.

3. Central Bank: The Bank of Japan, Japan's central bank, is responsible for issuing and regulating the circulation of yen currency. It also manages monetary policy to achieve economic stability and growth.

4. International Use: While the primary use of the yen is within Japan, it is also used as a reserve currency in some countries and is commonly traded in the foreign exchange (Forex) market. It is one of the world's major reserve currencies.

5. Banknote Designs: Japanese banknotes feature notable figures from Japanese history, culture, and literature. The reverse side of banknotes often showcases iconic landmarks and scenes from Japan.

6. Coins with Holes: The ¥5 and ¥50 coins have distinctive holes in the center, making them easily distinguishable from other denominations. These holes have both practical and symbolic significance.

7. Exchange Rate: The exchange rate of the yen can fluctuate in international currency markets, impacting trade and economic dynamics. It is commonly traded against other major currencies like the U.S. dollar and the euro.

8. Use of Cash: Japan is known for its widespread use of cash in daily transactions, and cashless payment methods like credit cards and digital wallets have been adopted more slowly compared to some other countries.

The Japanese yen's stability and recognition make it an integral part of Japan's economy and international trade. Travelers to Japan will find yen readily available for use in everyday transactions, making it essential for both residents and visitors alike.