The GBP/JPY (Great British Pound versus the Japanese Yen) cross is a favorite of day traders due to the high levels of volatility it exhibits. The pair often exhibits strong movements of several hundred pips per session.
This is a widely followed pair which has historically been used as a ‘carry trade’ due to the interest rate differentials between the UK and Japanese economy. The traditionally higher yielding Pound is purchased while the lower yielding Yen is sold on this transaction.
This correlation with risk trends will see the pair bought strongly when market sentiment is favorable. Conversely it tends to be sold off aggressively when markets take a ‘risk off’ perspective.
Back to Live Forex Charts