GBP-JPY LIVE
The British pound sterling and the Japanese yen exchange rate are represented by the ticker symbol GBPJPY. As of October 2019, the GBP is the fourth most traded currency, while the JPY is the third. Both currencies rank among the top eight global currencies. Since the US dollar (USD) isn't utilized while computing its conversion standard, the GBP JPY is known as a 'cross pair', and it falls under the 'minors' bunch in the forex market.
In forex trading, GBP-JPY is almost synonymous with volatility; a characteristic that gives the pair numerous nicknames, such as: The Geppy, "The Beast," "The Dragon," "The Widow-Maker," and "The Beast" The GBP serves as the base currency for the GBPJPY forex rate, while the JPY serves as the quote currency. This indicates that the amount of Japanese yen required to exchange for one British pound sterling unit is represented by the price of the GBP JPY pair at any given time.
History of GBP-JPY Trading Pair
History of the GBP/JPY Trading Pair: The GBP/JPY trading pair combines two currencies that have a fascinating and varied past. Before the US dollar took over, the pound sterling served as the "global currency" and predates modern civilization. Following the Bretton Woods Monetary System's collapse in 1971, it developed into its present form. The GBP has experienced two significant price peaks since then.
When the United Kingdom was compelled to leave the European Exchange Rate Mechanism on September 16, 1992, the value of the pound plunged by more than 25%; a day that came to be known as "Black Wednesday." And when the British people decided to leave the European Union (Brexit) in 2016, the pound lost over 10% of its value in a day.
The Japanese yen is undoubtedly one of the oldest currencies still in use today, having been adopted by the Mejji government in 1871. Due to Japan's unique and significant position in the global economy, the yen has always had an interesting price action.
The nation has a robust industrial base with a fascinating blend of manufacturing, technological advancement, and agricultural innovation. Because of this, Japan is one of the biggest exporters in the world. This has led the government to occasionally intervene in the foreign exchange market to make Japanese goods more competitive in international markets.
The GBP/JPY currency pair has always been volatile, and during the Great Recession, the pair traded from highs of approximately 250.00 in June 2007 to lows of approximately 120.00 in January 2009. Following the results of the Brexit vote in June 2016, the GBPJPY fell from highs of approximately 160.00 to lows of approximately 133.00.
However, the pair's most significant dates have occurred outside of the preceding time frames. On January 1, 1963, the pair reached its all-time high of 1014.00, while on September 16, 2011, it reached its all-time low of 116.85.
Why invest in the GBP/JPY pair?
Volatility In the forex markets, the GBPJPY is one of the most volatile pairs. This pair generates multiple trading opportunities almost every trading session thanks to its massive price swings and extensive ranges.
Carry Trade The British pound sterling (GBP) has a high yield while the Japanese yen (JPY) has a low yield. This indicates that going long with the pair overnight is possible with the GBP/JPY carry trade strategy.
Major Players Involved in GBP/JPY Trading
Bank of Japan
In the foreign exchange market, the Bank of Japan (BoJ) is probably the most active central bank. BoJ has never avoided mediating in the money markets to safeguard its spine trade industry. As a result, keeping track of the bank's monthly rate releases and rate statements is crucial.
Japan Statistics Bureau
The GBP/JPY pair is naturally volatile, so it overshoots important data releases. The major data that are released by the Japan Statistics Bureau can have a significant impact on the Japanese yen and, as a result, the price of the GBP JPY. Keep an eye out for crucial pieces of data like the Trade Balance and Japan's GDP numbers.
Japan Meteorological Agency
a curious aspect, nonetheless significant given that Japan is prone to earthquakes. When severe warnings are issued by the Earthquake Early Warning (EEW) system, the Japanese yen has always been under pressure.
Bank of England
The Bank of England releases rates and rate statements every month, and this can impact heavily on the pound, and consequently, the GBP-JPY exchange rate.
UK Office of National Statistics (ONS)
The ONS is in charge of producing and publishing important data that can be used to make economic and social policy. It is prudent for traders of the GBPJPY to keep an eye on the publication of economic data like GDP figures and labor market statistics like the unemployment rate and wage growth figures.
GBP-JPY Exchanging Connections
The GBP JPY pair has a negative connection with gold. This implies that the pair's cost will quite often rise when that of the valuable metal falls, as well as the other way around. The negative correlation between GBPJPY and Gold is supported by the fact that the Japanese yen is regarded as a currency of safety. Additionally, US real-interest rate expectations have always influenced the JPY and gold.
 |
| Free to use photo,This photo by https://www.pexels.com |