GBPJPY

GBPJPY refers to the foreign exchange quotation of the British pound sterling (GBP) against the Japanese yen (JPY). It is a cross currency pair, meaning it does not involve the U.S. dollar, and it is widely traded in the spot forex market. The price expresses how many yen are required to buy one pound; for example, a price of 150.00 means 1 GBP buys 150 JPY. Because of its structure and the interest-rate differential between the UK and Japan, GBPJPY is known for higher volatility than many other major pairs.

Trading characteristics and drivers: GBPJPY is influenced by both UK and Japanese economic data and policy, as well as global risk sentiment. Bank of England and Bank of Japan announcements, inflation figures, and growth data can cause large intraday moves. The pair tends to be more volatile during London and New York trading sessions, and it can exhibit rapid swings during times of macro news or shifts in risk appetite. Traders commonly use technical analysis to identify trends, support and resistance levels, and chart patterns, while also watching macro releases and central bank signals.

Quotes and mechanics: Like other JPY pairs, GBPJPY is quoted with two decimals in most brokers, and a pip move is 0.01. The pip value depends on lot size; for a standard 100,000-unit lot, a 1-pip move equals about 1,000 JPY, with the actual monetary value converted into the trader’s account currency as needed. Proper risk management is essential due to its potential for sizable price swings.

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