USD/JPY is on the top-3 most popular currency couples which are traded in the market at all times. And sometimes it is easy and sometimes it is insanely hard – to understand and to know what the couple is going to behave like and what traders are going to support.
But one thing is clear – if we want to see success in trading the couple we need to saddle up and look for the most interesting and most important fact about USD/JPY trading and try and implement them in our trading.
And so, this is exactly what I am going to do today.
1. Links.
2. Perfect for beginners.
3. Watch out for the bank.
4. Connected with nature.
5. Volumes are huge.
1. Links.
USD/JPY movements are easy to predict. At least that is what they say. Those who follow Japanese commodity market say that these two are running together and that by following the movements of the commodities we can easily see where the couple is going to move next.
Some traders are even going as far as to analyze global export/import numbers in order to see where the couple is going to go. And most of these traders come out of their USD/JPY trading as winners.
2. Perfect for beginners.
Of course it is easier to learn with something that is not prone to volatility and has high liquidity. Of course we think about EUR/USD at once. But the problem with EUR/USD is that it is too volatile. Of course liquidity there is perfect, but the shakes are too strong for the newbie to handle.
USD/JPY on the other hand has smooth trends and tends to shift in between them without any drama. As to liquidity, it is also not going to disappoint a market student. This all makes USD/JPY couple perfect for studying.
3. Watch out for the bank.
Bank of Japan has a very bad habit – it is prone to intervening into the market performance of the couple and has a lot of influence on trading all over the world. So those trading USD/JPY are to watch BoJ very closely – it might just become the reason for your losses. Those ignoring this little fact might see a lot of unpleasantness.
4. Connected with nature.
Interestingly enough trading yen might be disrupted by nature. Geographical position of Japan makes it easy for tsunamis and earthquakes to influence the performance of the national currency. When something happens the whole country starts to stand still. And that of course is reflected in trading.
So be prepared for nature to get in the way of your trading of you are willing to trade USD/JPY.
5. Volumes are huge.
So many times we have seen low volumes being the reason for the falls and losses. But I can assure you – that is not going to happened with yen. The couple of yen and greenback is based on two of the most active currencies in the world. The volumes are huge.
This not only makes our trading easier it also makes sure that we can find information on the couple, news and trading signals very easy.
It might seem like trading USD/JPY is far from being someone’s first choice. But we can see that the couple is a very good option for beginners and pros alike. Paying more attention to it might just result in you finding what you have been looking for. And we with our trading signals are going to help.
