There are many ways to trade the GBPJPY currency pair, but the key is to learn how to spot trading opportunities. For example, charting two moving averages can help you find trading opportunities. Typically, traders use the 21-day EMA and 50-day EMA to identify possible trades. When the 21-day line crosses above the 50-day, they may be able to take a long position and a short trade.
As one of the most volatile currency pairs in the forex market, the GBP/JPY can be a tempting pairing for new traders, but it can be a very risky trade. Beginners should avoid engaging in GBP/JPY trading until they ve accumulated enough experience and a strategy that works for them. Once you have a strategy in place, however, the GBP/JPY can be a profitable trading pair.
While GBP/JPY can move wide in either direction, trading breakouts can be particularly profitable. When big swings are correctly timed, you can capitalize on them and minimize your losses when they move against you. The key to successful trading in this market is to be aware of resistance and support levels to avoid making a costly mistake. In addition, volatility can cause huge fluctuations during short-term time frames. That s why trading breakouts is an excellent technique. Remember to monitor your support and resistance levels for the best opportunities.
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