GBP/JPY - British Pound / Yen - Forex Currency Pair

GBP/JPY Quotes

GBP/JPY Analysis

GBP/JPY News

The GBP/JPY Currency Pair (British Pound / Yen) is the exchange rate of the British Pound expressed in Yen. He expressed the value of one British pound in yen.

The GBP/JPY represents 1% of total transactions on the Forex in 2010. The GBP/JPY is known for its volatility. From 2008 to 2010, the volatility of the pair British Pound / Yen was around 300 pips. As a result, many speculators trade it on the short term to capture some of this volatility. For scalper Forex, GBP/JPY is therefore appropriate.

These large variations are due in particular to the various economic announcements that occur throughout the day. The economic news on the GBP (British Pound) are published most often in the morning and 10:30 (GMT+1) and at night, it is the turn of announcements on Yen.

The pair GBP/JPY has also been influenced for many years by the phenomenon of the carry trade. Indeed, for many years, interest rates were kept at 0% by the Bank of Japan. British rates controlled by the BoJ have them for many years been much higher than Japanese rates. As a result, investors sold the yen heavily to buy the British Pound which was more profitable.

However, with the crisis, the interest rate differential has narrowed considerably and the phenomenon of the carry trade is no more up to date on this pair. As a result, the yen has appreciated considerably due to the unwinding of carry trades. For a country based on exports such as Japan, this severely penalizes the country's growth.

The pair GBP/JPY is quoted in 4 decimal places but you can sometimes find 5 with some brokers. The exchange rate is floating and therefore subject to the law of supply and demand on the interbank forex market.

Both central banks linked to the pair Euro / yen are the European Central Bank (ECB) for the EUR and the Bank of England (BoE) for the GBP. Like other central banks, the BoJ intervenes regularly directly on the foreign exchange market to control its currency. Thus, it is not uncommon to see significant upward and downward spikes on the pair reflecting an intervention by the BoJ to depreciate the yen in particular to make increase exports of the country.

The decisions taken by both central banks also have a strong impact on the evolution of the pair GBP/JPY (interest rate changes, asset buyback program ....)

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BRITISH POUND (GBP):

The British pound (GBP) is the currency of England and Northern Ireland. This currency is the 4th most traded currency on Forex behind the U.S. Dollar, Euro and Yen. The British pound is present in 13% of transactions made on the Forex in 2010.. This is due largely to the fact that London is the most active financial place on the Forex because it represents 41% of the total volume of transactions.

The pound has historically been a strong currency reaching the price of 2.10 on GBP / USD in late 2007. Despite a drastic fall of the pound during the crisis, the currency is a currency of reference both in the Forex trade and international exchange.

 The England is also very attached to its currency and the England refused to adopt the euro. You can see below a £ 20 banknot:

The British pound is controlled by the Bank of England (BoE), which is responsible for making monetary policy decisions

YEN (JPY):

The Japanese currency is controlled by the Bank of Japan (BoJ), which is responsible for making monetary policy decisions.