EUR/JPY Vs. GBP/JPY | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

EUR/GBP, EUR/USD, GBP/USD, AUD/USD, CAD, NZD, JPY, and more... 15 replies

GBP/AUD, GBP/CAD, GBP/CHF and GBP/NZD thread 126 replies

long eur/jpy, gbp/jpy, usd/jpy 11 replies

GBP/JPY, GBP/USD, and EUR/USD (technical analysis) 3,084 replies

If you buy gbp/usd and sell eur/usd, is that the same as being short eur/gbp? 1 reply

EUR/JPY Vs. GBP/JPY

  • #1
  • First Post: Nov 30, 2007 1:16pm Nov 30, 2007 1:16pm
I would like to know about your preference for one of the pairs and the reasons; both are volatile but E/J spread is half of G/J, althought movements look also a little bit smaller; I know considering only the spread and volatility it's kind of a blind way to make an election, that's why I want some opinions.

I have been trading G/J but lately have been attracted to E/J because the spread, and I want to finally stick to only one of them because I'm planing to research as much I can about behaivor in time, patterns, correlations, news, etc. what do you think guys?

Thanks for reading.
Ado Whether you believe you can do a thing or not, you are right.
  • #2
  • Nov 30, 2007 1:25pm Nov 30, 2007 1:25pm
Really depends on the trader. The GBP/JPY has greater volatility, roughly double the volatility of the EUR/JPY. Not an exact science, but click on the month chart and zoom out. The EUR/JPY has an all time range of about 20k pips, the GBP/JPY has an all time range of about 44k pips. Roughly double. (Keep in mind, the Euro was created in 1999 and the data on the month charts are all fabricated based on the correlation between the EUR and the CHF.)

The EUR/JPY is less prone to huge swings of panic and confidence in the market as well. This boils down to the difference of trading the EUR/USD vs trading the GBP/USD. The GBP can be all over the place sometimes while the EUR/USD makes very nice technical moves. It also seems anytime the GBP/JPY gets too cheap the carry traders come back in and move it back up, the EUR/JPY is not As prone to this.

If you can get the GBP/JPY with a small spread on an ECN though, nothing can beat the potential in it. I know I made 90 pips in 8 minutes during a no news day a couple of weeks ago on the GBP/JPY.

Bottom line:
GBP/JPY greater risk and greater reward than EUR/JPY.
EUR/JPY tighter range, smaller risk, one could argue a more technical market.
The basis of a democratic state is liberty. ~ Aristotle
  • #3
  • Nov 30, 2007 1:27pm Nov 30, 2007 1:27pm
  •  mld
  • | Joined Sep 2007 | Status: Pips Raining Cats & Dogs | 85 Posts
I been trading both successfully, just see once GBP strong they no more moving same way
Good job! Enjoy JPYs, mld
  • #4
  • Edited 1:53pm Nov 30, 2007 1:34pm | Edited 1:53pm
Quoting Vensik
Really depends on the trader.
Thanks for answering Vensik. I was expecting somebody would ask this, but I didn't write more about because I think this is a topic that can be interesting fore more people, independently of my personal needs.

I use to trade 5 - 15 min. charts, supported by trend in 1 hour chart, scalp 20-30 pips and jump out, I find very difficult to hold a position more than an hour, and althought I have full time to trade, I have preference for setups in the Tokio and NY session because of my time zone.
Ado Whether you believe you can do a thing or not, you are right.
  • #5
  • Nov 30, 2007 1:40pm Nov 30, 2007 1:40pm
The volatility of g/y is not roughly double e/y. It's more like 50% greater. The spread on the other hand is roughly 2 or 3 times greater with most brokerages so it's much more cost effective to trade e/y. It's true you'll get more pips with g/y but so what? That doesn't mean you'll make more profit because you have to adjust your money management to take into account the bigger swings.
  • #6
  • Nov 30, 2007 2:01pm Nov 30, 2007 2:01pm
I prefer the Eur/Jpy... Less volatile.
  • #7
  • Nov 30, 2007 2:36pm Nov 30, 2007 2:36pm
dollar arget 114 by 31 st Dec 2007, e/j will rally and follow dollar.
  • #8
  • Nov 30, 2007 3:32pm Nov 30, 2007 3:32pm
Where's the love for USDJPY? Today is the first time in forever I've seen UJ outperform every other yen cross, hopefully the beginning of a new trend. Yes AJ is higher now, but earlier today UJ was cleaning house.
  • #9
  • Nov 30, 2007 4:06pm Nov 30, 2007 4:06pm
It all depends on which currency is stronger. To get a feel of what to trade open a chart for EUR/GBP. This will tell you which cross is more likely to be profitable and less choppy. Today USD was a hero all over the board and thats why UJ was a performer

Signed by
AV_FX
  • #10
  • Nov 30, 2007 4:34pm Nov 30, 2007 4:34pm
Quoting av_fx
It all depends on which currency is stronger. To get a feel of what to trade open a chart for EUR/GBP. This will tell you which cross is more likely to be profitable and less choppy. Today USD was a hero all over the board and thats why UJ was a performer

Signed by
AV_FX
You mentioned an interesting point here, but I'm not really clear about it, I'm understanding if EUR/GBP is up, then I should trade EUR/JPY and if EUR/GBP is down then I should look for GBP/JPY? no matter the direction of the trade? what if EUR/JPY is bearish but in charts also EUR/GBP is bearish so the pound is stronger, does it matter? or you suggest there are more chances of better trades in the stronger currency, no matter if it's up or down against the yen?

Sorry for the confusion, but I'd like you could explain more details of what you consider and deduct when watching at EUR/GBP charts.

Thanks.
Ado Whether you believe you can do a thing or not, you are right.
  • #11
  • Nov 30, 2007 5:08pm Nov 30, 2007 5:08pm
Lets Say that Euro is Stronger today than the Pound and all the crosses are bullish. Probability in Trading EUR/JPY will be higher becuase of lesser whips and the market sentiment is bullish towards the Euro. Both these pairs will go up but the chances of catching you S/L will be lesser on EJ

Hope it makes sense

Signed by
AV_FX
  • #12
  • Nov 30, 2007 5:39pm Nov 30, 2007 5:39pm
Trade both or single - as it suits you
  • #13
  • Nov 30, 2007 5:45pm Nov 30, 2007 5:45pm
Quoting av_fx
Lets Say that Euro is Stronger today than the Pound and all the crosses are bullish. Probability in Trading EUR/JPY will be higher becuase of lesser whips and the market sentiment is bullish towards the Euro. Both these pairs will go up but the chances of catching you S/L will be lesser on EJ

Hope it makes sense

Signed by
AV_FX
Definetly makes sense, but what about if today Euro is stronger than Pound, but the crosses are bearish? I think I got the answer myself, it's a logical connection (+) x (+) = (+) and (-) x (-) = (+), so the answer would be trading the weaker currency (GBP), am I correct?
Ado Whether you believe you can do a thing or not, you are right.
  • #14
  • Nov 30, 2007 6:23pm Nov 30, 2007 6:23pm
YEs
  • #15
  • Nov 30, 2007 6:54pm Nov 30, 2007 6:54pm
Quoting av_fx
YEs
Interesting aproach, I will dig more about in the charts, thanks for sharing .

BTW, it's late and the factory isn't down yet to the upgrades, so for the readers that are already here, don't go out without leaving your opinion
Ado Whether you believe you can do a thing or not, you are right.
  • #16
  • Nov 30, 2007 9:15pm Nov 30, 2007 9:15pm
I've been trading pound yen more recently (More volatile). My preferred scenario is trading a few pairs and a few markets altogether but that's not the topic here.

Trading more pairs are actually diversifying risk imo. Risk of making a wrong choice or if a single currrency gets hit whilst in the same pool, the rest are trending nicely i.e. majors are strong but 1 of them got bad news, your stops are hit. That's unlucky.

Hope that helps.
Still waters run deep
  • #17
  • Dec 1, 2007 8:28am Dec 1, 2007 8:28am
I'm more comfortable with GJ because I've been trading it almost exclusively for a while now and the familiarity is a great benefit in showing me signals to trade and signals to stay out.

I think GJ spread is overrated. I guess it depends on the way you trade but it's not much of a consideration to me. My new broker spread is usually around 4.7 pips in the London session, but it was 9-12 pips with with my other broker and that didn't make any difference.

An EUR/GBP chart makes a great indicator for GJ and EJ though. Sometimes if i think GJ is short, but the EUR is considerably weaker than GBP then it might be worth my while to short EJ instead or share my risk, because ive seen EJ perform equally or better than GJ in these conditions.




Quoting Ado
I would like to know about your preference for one of the pairs and the reasons; both are volatile but E/J spread is half of G/J, althought movements look also a little bit smaller; I know considering only the spread and volatility it's kind of a blind way to make an election, that's why I want some opinions.

I have been trading G/J but lately have been attracted to E/J because the spread, and I want to finally stick to only one of them because I'm planing to research as much I can about behaivor in time, patterns, correlations, news, etc. what do you think guys?

Thanks for reading.
  • #18
  • Dec 1, 2007 12:40pm Dec 1, 2007 12:40pm
Quoting barak
Trading more pairs are actually diversifying risk imo. Risk of making a wrong choice or if a single currrency gets hit whilst in the same pool, the rest are trending nicely i.e. majors are strong but 1 of them got bad news, your stops are hit. That's unlucky.

Hope that helps.
I think I can agree with this, but in a longer term scenery, and depends on the trader and strategy also; in my case, I've seen that looking at more than two pairs reduce my performance significantly, and my best times have been when trading only one pair, for me it's easier to identify patterns, weird movements, etc.

That's why I'm looking to research in only one and "get married" with it, althought the idea of the EUR/GBP chart given by AV FX it's interesting also.
Ado Whether you believe you can do a thing or not, you are right.
  • #19
  • Last Post: Apr 16, 2017 6:52pm Apr 16, 2017 6:52pm
Going to the south, both of EJ and GJ...
MAKE SURE you still can TRADE tomorrow
0 traders viewing now