In forex trading, currency pairs are often interrelated.
A fluctuation in one currency pair can affect another.
GBP/JPY
Base currency: Pound Sterling
Quote currency: Japanese Yen
Correlation of the GBP/JPY currency pair:
[EUR/GBP] - Inverse correlation, generally shows opposite trends.
[USD/JPY, EUR/JPY] - Positive correlation, follows market risk sentiment.
[USD/CHF] - Positive correlation, generally exhibits similar direction.
Best trading times:
- London and New York sessions: Offer peak liquidity and lower spreads, suitable for trading GBP/JPY.
Whether you are an experienced trader or a novice, understanding the correlation of related currency pairs can enhance your trading strategy!
![[Morning] Narrow fluctuations before data release](/_next/image?url=https%3A%2F%2Fproduction-app-asset.traderknows.com%2Foriginal_images%2Fc38c2d9a3893448eb897eff5b8137bd3.png%3FExpires%3D1724628519%26Signature%3DU5m-~~YBoglk-GI9RAeUp5Vrp9fhDzXupX7TFR-7qkZBtW8iTTASljilPKsBYI27gX9OHex53935p-ciak5FZUAhYBCgcq0zmFpIbb2afpAt0zT~EbFlWjBgEHktMrIXs9-O-9zFOOzEJAhaz7hN2gSinb-E0CkbAYdX47GtQbexatkJYi4F-4CjGs0nMivrkLmurvnPjTCMntP-GFBugXUSRNTh4~iDsfx7V8i7NoGJqO0f0ukbnP9PFjTFv5KBSOShzSPKhbRgELy86FKy~mwfgXjxNnzyFjoMu85eeCrSoEit7SjvPQvZGEMtKwUc8qqDw4E0W4xdOUJImHZp5A__%26Key-Pair-Id%3DK3LHBTUA5A7KEY&w=640&q=75 "[Morning] Narrow fluctuations before data release")
