Early Morning Binary Trading on the GBPJPY

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Early Morning Binary Trading on the GBP/JPY

Due to the insipid early-morning activity on the EUR/USD, I began looking at five-minute charts of a few other currency pairs and eventually settled on observing the GBP/JPY, which appeared to be in the midst of providing a good trade set-up. So I scrapped the euro-dollar for the day and went with the pound-yen instead to potentially take advantage of an immediate and likely better set-up.

The GBP/JPY was down for the day, falling down below both its resistance 1 and pivot levels in the early European market hours and beginning a pullback toward the daily pivot level 173.219 just as I began watching this market after 6AM EST.

Once this pair hit the pivot level around 6:05AM EST, it did provide a bounce and close back under. The next ten minutes, as you can observe from the candles in the image below, the pair did spend some time hovering above the pivot, but from watching it live it was clear that the sellers in this market were still strong enough to hold off any buying at this particular intraday level. It eventually fell back down below 173.219 by about ten pips before retracing back up.

Given that the GBP/JPY had already shown strong resolve in holding at the pivot and was in a net downtrend for the morning, I felt I had a strong set-up to go off of and would strongly consider a put option at the first touch of 173.219.

These are three very strong factors to support a trade set-up: 1) a trend that’s in your favor, 2) a price level – in this case a resistance level – supported by an important intraday pivot point (the pivot level), and 3) recent price action, where the GBP/JPY saw congestion at the pivot.

And one thing about the GBP/JPY for those who trade it or may consider trading it, is that it’s a very volatile pair and can move quickly. Especially during European trading hours and during the U.S. morning session. It can suit personality types that are suited to those who prefer fast-paced pairs. In fact, I know of one trader who makes his trading career spot trading the GBP/JPY exclusively. I have done some trading on it in the past back when the EUR/USD, GBP/USD, EUR/JPY, and GBP/JPY were all the highest-payout pairs on 24option.

When price came back up to the daily pivot level on the 6:45 candle, I pulled the trigger on a put option, expecting it to stay under 173.219 at least until the top of the hour. This pair was entering into some channel trading, oscillating back and forth in a ten-pip area for the past hour by that point. I was hoping it would continue to do that during my trade by receding into the “valley” part of the pattern. Fortunately for me, it did and I won this trade by about three pips. That doesn’t seem like much, but it was in my favor the entire time and was slow and steady in the intended down direction.

And with that, I am back in-the-money since resuming my binary options trading, with 3/5 ITM. Hopefully I can maintain that going forward.

How to Make a Profit Trading the GBP/JPY

Any currency pair in which the Japanese yen participates is not recommended newbies to trade, but only experienced binary options investors. One of these pairs is the GBP/JPY. Despite the risks associated with trading this currency pair, the GBP/JPY is quite popular. The GBP/JPY leaves significantly behind the NZD/USD accounting for 10 percent of the trading turnover.

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Being as popular as the USD/JPY, the GBP/JPY generally shows higher volatility.

The currencies belong to different economies; and this is the reason why large trading turnover is appropriate to the GBP/JPY.

The base currency in the pair is the British pound sterling. The quote of the GBP/JPY is two-digital, one pip is equal to 0.01.

How to Analyze the GBP/JPY

Analyzing the pound sterling, you need to have in mind that it’s affected by both the factors inside the United Kingdom and the Eurozone economy. However, the UK currency doesn’t show so strong reaction to the news from the EU as the euro.

The exchange rate of the Japanese yen is significantly impacted by the Bank of Japan’ policy and demand for Japanese consumer electronics.

A trader willing to deal with this instrument needs to check all news release marked in the economic calendar being able to influence the rate.

So, trading this instrument, you have to pay special attention only to those reports that have the most serious impact on the currency pair. However, news releases of minor importance can also influence the currency pair and hence are to be considered.

A trader needs to have in mind that the Bank of Japan fairly rare gives statements about planned interventions to depreciate the yen. This is also to be taken into account when you perform analysis. Depreciation of the Japanese yen is required to make the Japanese products more competitive on the world market. Japan is an export economy. Therefore, the exported volumes affect significantly the Japanese economy.

Trading this currency pair, quite a few traders use the strategy lying in opening orders or buying options only after the Bank of Japan interventions which typically make the GBP/JPY soar. A rate rise can exceed one hundred ticks. Along with this, the risk of losing is minimal.

The currency pair generally shows high volatility during all trading sessions. The European and UK news influence the pair during the European trading hours. During the Asian trading hours, news from Japan has the key role. During the American trading hours, the exchange rate of the GBP/JPY can be affected significantly by change in import of the Japanese products to the United States and Canada. This includes import duties and quotes for the Japanese products.

The statements given by the Governor of the Bank of England fairly regularly can influence the rate of the pair. The British pound can be also affected by political events, natural disasters, calamities in the UK etc.

The Bank of Japan revises the key rate monthly. The Central Bank holds a press conference on the same basis and makes statements that can significantly affect the GBP/JPY. The unemployment rate in the country is updated regularly. Natural disasters, calamities, other negative events are among the factors influencing the national currency of Japan, that is, the yen.

Where to Make a Profit on GBP/JPY

To make money on currency pairs, I advise you to pay attention to binary options.

And to make a profit on a binary option, you just need to make a precise forecast of a direction that a price will take, that is, UP or DOWN.

I prefer to deal with AnyOption, the famous and time-tested broker. This world’s top binary option broker is well-known in Europe and the United States.

So, I browsed the broker’s website and chose GBP/JPY as an underlying asset. Today, there were important news releases in the UK. On the other hand, the stock exchanges in Japan were closed.

The Japanese yen is impacted by the U.S. dollar at this point of a day. However, there were no important news releases in the United States. Due to these factors, the trend in the GBP/JPY changed to bullish.

I set expiration of the binary option to 3:00 p.m., selected the investment amount and clicked the CALL button expecting the price to rise:

It was 2:26 p.m. at that moment meaning that I invested for a period of 34 minutes.

I knew if the price rose even by a pip in line with my forecast, I would get a 80 percent profit.

After a little while, I got the following result:

Anyone can generate a profit trading binary options on the GBP/JPY. By the way, along with binary options on currency pairs, AnyOption offers binary options on the world’s leading companies’ stock, indices, and commodities.

GBP/JPY Binary Options Trading

Trading binary options can not only be successful – it can be profitable as well. There are many ways to trade binary options, but probably the most preferred one is to choose the currency pairs. Along with those forex exchange pairs you can find lots of commodities, indexes, etc. In this article we would like to pay attention to one well-known currency pair that lots of traders prefer to trade with – GBP/JPY.

In every traditional stock market out there, trading forex exchange currencies means you will have to take a close view and realize how those things work and how a certain currency will trade with another. All pairs that have USD are called major ones and those without USD – cross pairs.

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However, the British pound is an important currency in the global market thanks to the major economic influence of the United Kingdom. Britain is known as the factory of the world ever since 18th century.

On the other hand Japan has grown its global economic influence ever since 20th century. The country is one of the leading export countries making different goods for almost every country on the planet. As a result of those things the Japanese yen has become one of the major currencies as well. If you want to become a good binary options trader then you should know that there are a number of factors that play significant role on the forex exchange market and influence the prices of those currency pairs. Keep close attention tothe economic situations of the countries because this is one of the most important factors that define the movements of prices.

When the GBP reacts to various changes against the yen, it means that now is a good moment to do some binary options trading, make sure you don’t miss those moments.

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