Introduction to HKDJPY

This is a Forex quotation on Hong Kong dollar to the Japanese yen ratios.

About HKD

The Hong Kong dollar is not a standard currency in the country. It serves as a “track warehouse” for the Hong Kong. Today, the HKD is amongst the most vital trading currencies in the world. Hong Kong dollar is not yet included in the reserve currency. HKD profit rate is developed on an automated mode programmed to hold the exchange rate constant.
The Hong Kong dollar is pegged to the US dollar in a narrow trading band of between 1. 5% and 2. 0%. This exchange rate ties the HKD to different currencies, such as the euro, the yen, and even the yuan. The Hong Kong dollar has been pegged to the US dollar at 7. 80-to-1 since 1983, but a notable attempt was made in 1998. The bond was broken and the HKMA had to make some attempts to thwart the attempt. This is especially in 1999, 2000, 2003, 2004, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013 and 2014.
If the local currency becomes too strong, it can be bought and sold on the free market. If it becomes too weak, it can be bought at the exchange rate of the dollar. Since 2005, the Hong Kong dollar has been allowed to trade at the exchange rate of the US dollar, but not against any other currency.
Hong Kong’s monetary base is supported by foreign-exchange reserves, with local interest rates in step with those of the US. The government spends HK $118 billion a year buying stock futures to drive out currency speculators who want to break the peg. It is used to defend the bonds and to do business in foreign currencies such as the US dollar and the Hong Kong dollar. By setting the exchange rate against the US dollar, the Hong Kong government is stabilising the currency. The fixed exchange rates offer Hong Kong many advantages. It help the local economy and its foreign exchange reserves, as well as the country’s economy.
 Hong Kong’s currency is pegged to the US dollar, so it shares some of these advantages. The pegged exchange rate means that it has all the advantages of the US dollar without the baggage. In other words, as long as the currency is pegged to the American dollar, it is not a currency with a negative impact on the local economy.

About JPY

Japanese yen is one of the most popular currencies exchanged worldwide. The yen is coined from Japanese word ” the yen,” which implies circle or round object. The word became round and referred to the coins that were first used by the Japanese in antiquity. The Mint Bureau based in Osaka is in charge for the coinage of yen. The yen is most traded currency in Japan, with a market capitalization of $1. 2 trillion.
The yen is undervalued against the US dollar and the British pound. It is the third most traded currency in the world. Because of its floating exchange rate, the Japanese yen is considered volatile. This has earned it a reputation as a safe haven on the market, especially in times of financial crisis and economic instability. It is a popular carry trade. This is because small interest rates make it cheap to borrow.

Summary of Hong Kong Economy

Hong Kong’s economy is characterised by a high level of trade and investment. It has high investment in infrastructure and a strong labour market. Trade in goods and services which accounts for a significant share of re-exports is about four times GDP
Hong Kong is considered a free economy. It is called a service economy because it accounts for more than half of the city-state’s total gross domestic product (GDP). Hong Kong’s economy is characterised by high employment levels, low unemployment and high economic growth.
Hong Kong’s economy has proved resilient in the face of economic downturns. These includes the 2008 financial crisis and the 2008-09 financial crisis in China. Economic growth include; the development of real estate, public infrastructure, and tourism. It has a free port with no tariffs and limited excise duties. It is also an important source of trade and investment for China and the rest of Asia.

Summary of Japan's Economy

Japan is the most industrialized economy in the world. It is the 3rd largest economy, behind China and United States.  The Japanese government has adopted a fiscal policy. This is to offset the negative impact of a strong yen on the economy. This will stimulate growth in the domestic market, and strengthen the real estate and financial sectors. The government increased government spending. This drives up the value of shares and land price.
This pushed up prices forced the Bank of Japan to intervene. It lowered its lending and interest rates in what later became known as the bubble economy. Gross domestic product (GDP) was estimated at $4. 7 trillion in 2016, and the population of 126. 9 million enjoys a high standard of living. Japan was the first Asian country to climb the value chain from cheap textiles to advanced manufacturing and services. This now account for the bulk of GDP and employment.

Forex Correlation

When one hears the word correlation, one thinks of the connection between two or more things. When we speak of correlation in Forex, we generally refer to currency correlation. If you have ever observed one pair of forex gaining value and the other falling, then you have seen this kind of correlation in action.
In the world of finance, correlation is a statistical measure of the relationship between two securities. Currency correlation is used to measure how two financial stocks move in relation to each other.
Positive correlation between any two Forex pair indicates that they are moving in the same direction. A negative correlation indicates that both pairs are moving very similar. It is important that traders nderstand how to interpret this. When you trade a pair, such as the US dollar and the euro, the risk is increased when prices move in opposite directions. The ForeX correlation is one of the most important factors that traders encounter when they begin to venture deeper into trading.
By using the correlation coefficient, you can understand the relationship between two values. This helps you manage your risk. The correlation between EURUSD and GBP / USD is a good example of this. The euro is one of the most traded currencies in the world, with a positive correlation of 1. 0 and 1. EUR, USD, AUD and USD also have strong positive correlations (0 to 91). In other words, the euro and the USD trade at different levels. Value relative to the US dollar, the GBP and USD move in different directions relative to each other.
Since currencies are quoted in pairs, it is good to follow a pair’s correlation coefficient as you trade the market. This is to take advantage of its correlation.

Forex Volatility

Forex volatility is defined as the rate at which the price of an asset rises or falls in the face of a given yield. In trading, volatility refers to the extent of price movements over a given period of time.
When a trader says that the market is highly volatile, that does not mean that exchange rates change during a trading session. Forex traders view volatility as a measure of their ability to control their trading volumes. If, for example, it is too high, they try to reduce the volume of transactions, and vice versa.
The volatility of a currency pair can be measured by many factors. It includes the price of the currency, the exchange rate, or even the interest rate of that currency.
Thus, you should pay attention to the current volatility of your currency pair. You should be aware of when you are trading and how it changes over time. You should also need to know how to calculate volatility and keep an eye on economic events that could affect volatility.
When we talk about how to make money with Forex, we also have to mention volatility. Many traders who are new to the market are not paying attention to what they are trading. The truth is that ForeX traders live with volatility. This is because it creates profitable trading opportunities.
Currency pairs are different in volatility levels. Traders can decide what they want to trade. Little price movements shows lower volatility, but higher occurring movements indicates higher volatility. This means that when volatility is high, trading risk is higher, and a trader cannot decide which currency he or she is trading with at all
Price movements of currency pairs is regarded in the form of pips, and currency pairs are those that make large movements in a short period of time. For example, if a couple makes only a small movement, they are more likely to make a large movement than if they do not move at all.

Carry Trades

Carry trades are amongst the most popular trading strategies in foreign exchange markets. When a trader makes a carry trade, he sells a currency at a low interest rate to buy a higher one. Overnight positions refer to open trades that do not liquidate at the end of a normal trading day. They are quite common in foreign exchange markets such as the US dollar against the yen.
The aim is to enjoy from the difference in interest rates. This can be significant when debt is taken into account. Because most foreign exchange traders use leverage, carry trades can provide significant returns.


This is the difference between quotations and the actual exchange rates between the two currencies. A spread indicates the amount you have to overcome to become profitable.


It can be quite difficult to find the best indicator for the Hong Kong dollar (HKDJPY) or any other currency in the world. Although it has become the a route to profit, most indicators provide the same information. They produce contradictory trading signals that can confuse traders and lead to lashing losses. By combining different indicators in different time, traders can minimise fake signals. This will make them take advantage of the strength. For example, when the oscillator says “sell,” the trend indicator says “buy,” and vice versa.
When you embark on forex adventure, you are likely to encounter a swarm of trading methods. Each offers its own trading platform, configured for different types of markets and liquidity levels.
Many currency traders use a moving average of one kind or another. This is to get a feel for the underlying direction and trend in the market. The use of one or more moving averages can be used to provide accurate picture of the movement of a market than a series of moving averages
Widely used indicators are centred on a moving average or trend indicator, the value of which is used to form a M A.C.D histogram. Widely used indicators include moving averages – the average of a single trend, a series of moving averages, or many of them. An indicator can be considered to be an oscillator when combined with another indicator that follows a trend.
A famous categories of technical indicators is an impulse indicator, also known as an oscillator. A volatility indicator measures the rate of price change, as the name suggests, in relation to the change in the price of an asset over a period of time. Famous volatility indicators comprises the S & P 500 Index, the Dow Jones Industrial Average, and the NASDAQ 100 Index.
Bollinger bands are based on a moving average with two more lines placed within 2 standard deviations of the moving averages. If the price goes above or below an extra amount, then the trend begins. This is used because when prices are below or above, it signals that a trend has set in.
Whether you are a trend reversal or breakout trader, there is no shortage of technical indicators available to you in the market today. With some care, however, the use of the Bollinger ribbon as a technical indicator of the Hong Kong dollar can become second nature.
All in all, the best are easy to use and will enrich any comprehensive trading strategy. If you are getting started, you should stick to this approach and try to identify your trade rather than get started and forget about it.
The forex market is available 24 hours a day. UK trading in particular tends to be active at 8: 00 and retreat at 17: 30, while US trading peaks are reached at 19: 45. Not all traders are often looking for the best one-hour forex strategy, which they can use in a short time frame without daily obligations and trade.
If you follow market volatility as part of your trading strategy. The best time of day for forex trading will coincide with the greatest movement. This scenario will apply to other countries and currencies. It is based on the 1-hour candlestick chart. The Jpy is a good choice for people who work all day. It is active during the day, while the main ForeX pairs slow trading volume.
Generally, it is about trading and finding potential buyers and sellers, but certain traders can be freelancers. Some work day and night, others are full jobs, others work all day or all night and are freelance.
In summary, the best time for forex trading is when most markets overlap and the currency pairs you trade are tied.
The Hong Kong dollar differs from other currencies, but so do its economic drivers.
There is a good chance that the HKD / JPY will no longer be as relevant in the long term. This is why it pays to trade in short-term money market funds.
In the end, there may come a time when the Chinese yuan’s exchange controls are reduced or weakened. In this case, the HKD will play a decisive role as the base currency. In the short term, if a Hong Kong dollar is exchanged for 13. 86 Japanese yen today, it will be priced at $1. 11 to the US dollar.

This pair is characterized by low liquidity. But traders can make profits with good technical and fundamental analysis. In all, forex traders can trade this pair with FXCM because the spread can be quite wide.

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