GBP/JPY

Understanding GBP/JPY: A Comprehensive GuideThe GBP/JPY is the currency pair encompassing the British pound of the United Kingdom (symbol £, code GBP), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how much Japanese yen is needed in order to purchase one British pound. For example, when the GBP/JPY is trading at 165.00, it means 1 British pound is equivalent to 165 Japanese yen. The British pound (GBP) is the world’s fourth most traded currency, whilst the Japanese yen (JPY) is the world’s third most traded currency, resulting in a very liquid and popular currency pair. GBP/JPY Prized for its Versatility Among TradersThe GBP/JPY often stays within the 1 pip to 4 pip spread range on most forex brokers. This coupled with its consistently high range and volatility makes it a great candidate for both medium-term and long-term trading, although it is also very popular with scalpers. The GBP/JPY is one of the most widely traded forex pairs. A lot of traders actually prefer it to the major pairs, because of the potential it provides. It’s popular with both technical and fundamental traders. The pair’s range easily surpasses a hundred pips on most days.Seasoned news traders also love this pair, since it reacts more vigorously to economic reports and news releases compared with most of the other pairs which possess similar spreads.However, high spreads and whipsaws can be a problem during really high-impact releases.When it comes to technical trading on the GBP/JPY, the classical tried and trusted technical analysis tools and patterns are still the number one weapon of choice. Despite the almost exponential increase in the number of indicators and scripts available in recent years, perhaps with a few exceptions, they simply don’t provide the consistent level of insight a trader needs.Additionally, trading the GBP/JPY gives you exposure to some of the most important economies in the world. Designated as a safe haven currency by investors, the JPY garners popularity in times of volatility or turmoil.By extension, the GBP has remained a paramount currency, despite the recent fallout wrought by Brexit negotiations with the European Union. As such, the currency pair has been highly subject to these discussions, with no resolution presently in sight.