Anyone trading GBPJPY?

[torero]

Seems to be my favorite at the moment... fast up and fast down, long gyrations. Hate the spread though (just awful averaging 4 pips)... but gotta accept the necessary evil. I've pretty much narrowed down to trading mainly JPY-based pairs (USDJPY, GBPJPY and EURJPY) and occasionally GBPUSD.

[Sparrow]

Hi torero,

I'm not trading the pair just doing my research but I am looking a lot into cross pairs these days.
Unfortunately not the best spread on them but the moves sure are fantastic.
JPY crosses I'm looking at: AUD,CAD,CHF,EUR,GBP
GBP crosses: CHF
EUR crosses: AUD,CAD
AUD crosses: CAD

NZDJPY might be tradeable too.

[Soultrader]

Hi Torero,

What is your timeframe when trading USD/JPY. Its something I have been watching for the past 8 months now but have yet to jump into it. A very technical market in my opinion but still afraid of currencies due to my lack of knowledge in that market.

[cowpip]

My favorite at the moment is eur/jpy, although $/yen is a pretty cool pair as well. The recent doubt that the ECB has introduced into the mix for the euro certainly has provided a nice bit of downside potential for eur/jpy which has been quite profitable.

[torero]

JPY-based pair have been very trendy, mostly strength of the YEN, hence my affinity to them lately. I use 240-min, then 200 ticks to trade off them. Of course I mark all the S/R areas from weekly and monthly charts.

Due to the spread, problem with the GBPJPY is that you're not allowed to be sloppy, that means you have to be precise in your entry when the trend starts. The percentage of wins have to be at least 40-50% or else a few losers with high spreads add up quickly. I tend to sit tight until it hits S/R of importance and then wait for the test to fail and get in. I never join in when the trend is already in progress (I'm talking in 200 tick charts here). Because once it's started, it's very hard to know where to get out when it moves against you. I'm learning to when to let it run. Although my percentage has been better than I expected.

One thing I do watch is the other same cross pair to find similar movement, say, USDJPY and EURJPY. All have to move together in a breakout, I put a bigger lot in the trade, if just pickpocketing from range, I play a smaller lot. Hope that helps.

[Sparrow]

Best of the pack has ben CADJPY lately, nice downward channel for more than a week.

[torero]

I haven't watch much CADJPY but I'll keep an eye on it. If these move together chances are the move is real, especially when they all break out. Once it starts, it's a pretty good ride.

[JennysGuy]

I'm considering, right now I don't have the time to be trading as actively in the markets as I like. I'm leaving it up to one particular automated EA system that is working really well for me.

The system's geared towards GBP-USD but I'm opening a demo account to live test it on a more volatile pair like the GBPJPY.

[torero]

I pare down the size when trading GBPJPY due to high spread, not sure how system will handle that. EURJPY is a bit slower but spread is good 1-2 pips max, I can go full size on that one. Good luck.

[cowpip]

	Quote:	torero
	I pare down the size when trading GBPJPY due to high spread, not sure how system will handle that. EURJPY is a bit slower but spread is good 1-2 pips max, I can go full size on that one. Good luck.

Yeah, that's wise advice. Unless you're at a significant S/R level and have a good price confirmer, some reduction from full size is probably wise - and especially if you're not used to the pair's characteristics.

I too think eur/jpy is an excellent pair for slightly lower volatility, yet good spreads.

I certainly wouldn't be trading full size on an automated plan with gbp/jpy - but then, I don't trust the automated plans any further than I can throw a twelve-ton boulder. I only trust price action, and price action alone. To each their own...