Currency pair GBPJPY.

Despite its weakening position, the British pound remains popular for settlements between financial institutions and is also actively used in speculative forex trading.

It makes an excellent pair with the Japanese yen. Due to the different factors affecting these currencies, this trading instrument enjoys quite high movement rates, opening up ample opportunities for profit.

GBPJPY is both a profitable and risky currency pair, so working with it is recommended for traders with some trading experience.

Key points.

The base currency is the British pound, the most valuable currency in the world, which is why one lot of GBP/JPY is worth more than 100,000 pounds.

The pair is unusual; it has a two-digit quote; some forex dealing centers, for the convenience of traders, offer a three-digit quote. Despite this, the value of one pip with a standard quote is still close to $10, given the current exchange rate.

Trading features.

The currencies in the pair have different personalities. While the pound is considered more of a stable currency, the Japanese yen is known for its volatility. The main reason for this is the government's attempts to keep the national currency's exchange rate low.

Under normal circumstances, the Japanese yen gradually gains value, but as soon as its exchange rate becomes economically unfavorable, the Bank of Japan intervenes.

This triggers an upward trend in the GBP/JPY pair, which can last for hundreds of pips.

This is the intervention tactic most traders use to make money on GBPJPY. This type of trading doesn't require frequent trades, but it's highly profitable.