Trading EURJPY.

Most traders prefer to trade the Yen using the US dollar, but there is a category that prefers the EURJPY currency pair.

The main reason why preference is given to EURJPY is the trading time; by trading during the European Forex session you can get more profit on this instrument.

The EURJPY pair is cross-currency, this aspect introduces some difficulties into its trading, but does not stop most traders; they love it because of the low spread and good movement dynamics.

Characteristic.

When trading EURJPY you buy or sell euros for the Japanese yen, so the main currency (base) is the euro, and the quoted currency is the yen. Trading volumes are accordingly measured in European currency, 1 lot is 100,000 euros.

The pair has a direct relationship with the Euro exchange rate and an inverse relationship with the Japanese Yen rate.

The commission size ranges from 1 to 4, which is why the tool can be used even when opening short-term transactions using the scalping .

The cost of 1 point with a volume of a standard lot is about 9.9 dollars. It should be noted that there is a positive swap in case of opening long positions.

Features of Forex trading.

The pair is quite capricious and often changes its direction, so you should not count on a stable trend.

The trading strategy with EURJPY mainly involves opening short-term transactions immediately after the start of a new movement; as a rule, it is possible to earn a couple of dozen points from one movement.

At the same time, be careful when changing trading sessions; it is at this moment that sharp reversals can occur.

We should not forget about everyone’s favorite interventions of the Bank of Japan; they usually occur when the Japanese currency strengthens excessively. Therefore, before starting a transaction, it would be a good idea to assess the level at which the price is currently located.