Introduction to GBPJPY
The GBP/JPY pair tells the trader how many Japanese Yen (the quota currency) is needed to buy one British Pound (the base currency). It is known to be a carry currency cross, which is a cross that is a carry-trading vehicle (one of the most popular trading strategies of today). A carry trade occurs when a person sells or borrows an asset with a low-interest rate to buy another asset with a higher interest rate. This strategy is used extensively on the foreign exchange (forex) market.
Technical Analysis For GBPJPY
Fundamental Analysis For GBPJPY
The pair GBPJPY has negative gold correlations. This means the price of the pair continues to increase as that of the precious metal falls, and vice versa. The Japanese yen is considered a safe-haven currency, validating the unfavorable link between the GBP JPY and the gold. Additionally, US real interest rate expectations have also powered the JPY and the gold. The GBPJPY is one of the most volatile pairs on forex markets. Huge price moves and broad ranges ensure that this pair generates many trading opportunities. The Japanese yen (JPY) is a low yielding currency whereas the British pound sterling (GBP) is a high yielding currency. That means the gbp-jpy helps the carry-trade strategy to be implemented by going long overnight with the pair.
Major Bodies Influencing GBPJPY
Here Are the Key Factors to Keep in Mind Today for British Pound Trades
Here Are the Key Factors to Keep in Mind Today for Japanese Yen Trades
The Best Time to Trade GBP JPY
I have actually heard a trader who prefers to trade 15-minute expiration dates on a 15-minute chart, but I feel more comfortable with daily charts. I use daily pivots on the M30 and H1 charts, weekly pivots on H4 and D1 charts, and daily pivots on both charts. In spot foreign exchange trading, I swing the trade, which means I hold a position for an extended period of time.