Most traders in the FX Market focus on only a few of the pairings available to them. In this series, we're taking a closer look at these pairs, and how traders might be able to best approach them.
The British Pound – Japanese Yen currency pair is a volatile offering that presents traders with potentially large moves in price relative to many other pairings. This currency pair is, at times, so volatile that it has earned the nickname of ‘The Dragon,’ as well as another well-coined term: “The Widow-maker.”
Whatever you call it, the fact remains the same: GBPJPY can really move.
Take, for instance, the initial throws of the Financial Collapse in 2008. While the EURUSD had, at one point, gone down by ~3300 pips, the top-to-bottom move on GBPJPY was much larger: at one point a loss of more than a staggering 7000 pips.
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