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GBPJPY: Live Pound-Japanese Yen Rate, Chart and Forecast

December 07, 2021 13:20

The GBP to JPY pair is characterised with high volatility levels, which is attractive for many traders. The volatility offers higher profit potential, but it also comes with higher uncertainty.  Moreover, many trendy movements and price swings are evident in GBP to JPY rate making the pair suitable for various trading strategies. Read on to learn more about GBPJPY, its history, benefits and how to start trading it today. 

What is GBPJPY? Overview  

The British Pound to Japanese Yen pair combines two of the most traded currencies globally, and the pair is considered an indicator of global economic health. The reason is that this pair links the aspects related to monetary policies from one of the largest economies in Europe with one of the largest economies in the Asia-Pacific region.

Individually, both currencies are labelled a “major”, because they are in the top five currencies in terms of the trading volume. However, they are part of the “cross” currencies pairs category as a pair because neither of the composing currency is the US dollar. 

The GBP/JPY is also called “the Dragon”, and the rate shows how much Japanese Yen are required to purchase one pound sterling. Also, the exchange rate displays the amount of JPY that will be received after exchanging one GBP. The volatility level and the occasional wide sideways creates a particular interest for risk accommodating forex traders. 


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How to Read the GBPJPY Chart

Even though a forex pair might be perceived as one instrument, opening a forex trade considers the sale of one currency and the purchase of another. Brokers will display two prices for each forex pair: a bid and an ask rate. From traders’ point of view, these are the rates at which you will sell or buy the pair.  

In the example above, traders can buy GBP for 153.859 Japanese Yen, and they sell the GBP at a rate of 153.715 JPY per pound sterling. To avoid any confusion, keep in mind that traders will always buy the GBPJPY pair at the higher rate, whereas they will sell it at a lower rate. The difference between the two rates is called spread, which represents earnings for the broker.  

Fluctuations in the exchange rate are measured in a number of pips. The GBPJPY pip value in monetary terms depends on the position’s size and the exchange rate. 

GBPJPY Historical Data 

The pair has experienced a decline in the rate after reaching its highest prices more than 50 years ago. However, downward movement is obstructed with many price reversals and price swings. 

GBPJPY Exchange Rate History 

The GBP JPY pair has experienced a long-term negative streak lasting more than half a century, but significant price reversals constantly interrupted this downward trend. The pair’s All-Time-High price of 1014 JPY for one pound was reached in 1963. In the last half a century, this pair registered its highest rate in the first half of 1971 when one GBP was exchanged for 864 Japanese Yen. In contrast, the lowest rate was hit in the second half of 2011 when the GBPJPY declined to nearly 116 Japanese Yen for one British pound. 

The exchange rate forms clearly defined upward or downward movements evident across different time frames. During the 2008 financial crisis, the pair lost more than half of its value from mid-2007 to January 2009, when it fell from 250.00 to 120.00. From 2011, after hitting an ATL rate, the GBPJPY price moved in a multiyear upward trend until 2015, appreciating by 65%. The GBP to JPY pair maintains its volatile movement, and the average monthly volatility over the last ten years is around 750 pips which creates sufficient trading opportunities. 

GBPJPY Exchange Rate Today 

The GBPJPY live chart indicates that the pair maintains the volatile trendy movements with wide swings. There are almost regular daily fluctuations of more than 100 pips. Depending on the day and the relevant GBPJPY news, the rate may change by more than 130 pips in a single day. A positive aspect of the exchange rate today is that GDPJPY analysis can be executed with technical indicators due to the repeating patterns found in the price movements. 

What Influences GBPJPY Exchange Rate?  

As representatives of strong economies from Europe and the Asia-Pacific region, many factors influence the GBP JPY rate. Some of the most crucial factors are: 

  • The monetary policies managed by the Bank of England and the Bank of Japan. Other authorities that have a crucial impact on the forex market are the Japanese and the UK governments through their policies, decisions and events. 
  •  Changes in the supply and demand for the currencies  
  • Energy prices significantly influence the GBPJYP rate, because Japan is a major importer of natural gas and crude oil. 
  • The economic performance and output of both economies are also major factors that might influence the pound to yen rate on the forex market. 
  • Movements in other currencies such as the US dollar or the Euro  
  • Prices of bonds and securities issued by the UK or Japanese authorities  
  • Fluctuations in the value of stock market indices like FTSE 100 (UK) or the Nikkei 225 (Japan). 

GBPJPY Forecast and Predictions 

The degree of fluctuations in the GBP JPY rate depends on the degree of changes in monetary policies of the two countries and other relevant factors. Hence, traders should analyse important economic, social and political data, governmental and monetary policies, export and import levels between UK and Japan.  

Moreover, the repetitive patterns in price movements make this pair suitable for different technical indicators and tools. Consequently, using different types of tools and analysis, experts attempt to predict future movements. The anticipated GBPJPY forecast for the next period is presented in the table.


Forecasted GBP to JPY rate 

2022  174 
2023  180 
5-year  163 

In the next couple of years, there are overall bullish expectations. However, it is anticipated that the GBPJPY rate will experience a decrease after recording a multiyear appreciation. It should be noted that there are expectations that price swings will continue to appear in the GBPJPY movement. 

GBPJPY technical analysis displays different trading opportunities in line with the analysed time frames. Consequently, technical indicators detect potential trading signals for short as well as long positions. For instance, the GBPJPY signal detected on hourly and daily charts indicates a possible decrease in the rate and opportunities for a short position. In contrast, the weekly and monthly price charts signal potential bullish movements. 

Why Trade GBPJPY Today?  

Some of the aspects that support the idea to trade GBP to JPY pair are: 

  • The high GBPJPY volatility attracts traders because it offers an increased number of trading opportunities. The pair might experience an hourly movement of more than 30 pips while it could fluctuate by more than 120 pips per day or more depending on the factors.  
  • GBP JPY price may experience wide and volatile swings during or between trading sessions. 
  •  There is high liquidity in the market for GBP/JPY. 
  • You can use the GBP/JPY pair to profit from changes in macroeconomic sentiment and market conditions. This is because the rate is influenced by the changes in stock and commodities prices. 
  • You can also profits from changes induced by positive or negative news and events related to the two economies and even the two regions. 

Where Can I Invest in the GBP JPY Pair?  

Trading CFDs associated with the GBPJPY pair is a rather straightforward process when executed through the ZFX platform. CFDs represent a derivative instrument that swiftly becomes popular among investors and traders because of its features and simple trading steps. Traders can speculate on the pound to yen rate movement with zero trading commission and no deposit or withdrawal fees. Trading GBPJPY on ZFX also comes with generous leverage utilised by traders to augment the potential profits.  

Furthermore, ZFX represents an optimal broker for trading GBP to JPY because it offers an economic calendar, market news and outlook, and numerous trading tools. Additionally, ZFX clients can trade different instruments like stocks, indices and commodities.  

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How to Trade GBPJPY Now 

To buy or sell GBP to JPY currency pair, traders should start by registering an account with the ZFX broker. ZFX has defined a simple and easy to understand process described next. 

1 – Open a ZFX Account

Go to the ZFX website and select the “Open an account” button or navigate to the “Accounts” section. You have the option to immediately open a live trading account, or you can open a demo account and test your strategy. 

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Selecting the desired option will take you to a new window that requires certain information. To complete your registration hit the “next” button once you provide the requested information. You can then have successfully opened your account. 

2 – Verify your Account 

This step considers the account verification part of the trading process. Now traders need to verify their identity and their bank account. Traders should have valid documents like a driver’s license, national ID or passport. ZFX will ask you to upload a scanned copy of the selected document. Moreover, you need to verify that your bank account is valid and functional. You can do so by providing a copy of your bank statement or from your bank book.

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3 – Make your First Deposit  

To fund your account after successful verification, you need to go to your dashboard, and you can do so by selecting “myZFX” and log in with your username and password. You can deposit funds to your account via Bank Transfers or Credit Cards. ZFX waived deposit and withdrawal fees traditionally charged by brokers

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4 – Start trading GBPJPY 

To buy and sell GBP to JPY currency pair or other instruments, traders need to download the desired version of the ZFX MT4 trading platform. Now you can log in with your account details and select the desired forex pair. 

 GBPJPY buy or sell trades can be opened after setting the values on the graph that emerges. Traders should define the volume, order type, and if they want, they can set a take-profit or stop-loss orders. They should also decide whether they will open a long or short position. 

Tips for GBP JPY Beginner Traders 

Given how GBPJPY fluctuates and the factors that could affect the exchange rate, traders should pay attention to the following tips: 

  • The GBP to JPY pair is highly volatile, which means that it could experience major fluctuations in a given period. This is the reason behind the use of technical indicators price action analysis. 
  • If you’re new to forex, you can practice trading GBPJPY with a demo account offered by ZFX. 
  • The rate may move in a trending direction before it experiences a major correction. 
  • Follow the GBPJPY correlation with other currency pairs, as well as news related to forex. Also track developments in economic policies in both countries. 
  • The best time to trade GBPJPY largely depends on your trading strategy and the trading hours or sessions for the pair. However, as a general principle, a good time to trade the pair is when the London and Tokyo markets are open and overlap. 

Bottom Line: Is GBPJPY a Good Investment Now? 

The GBPJPY pair has the potential to offer highly profitable trades to traders with a solid trading strategy. The increased profit potential comes from the increased level of volatility experienced by the pound to yen forex rate. The economic differences between the two countries additionally contribute toward the increased volatility. 

Different analytical tools and types of analysis fit well with the price fluctuations of this pair. Moreover, the GBPJPY outlook indicates a potential bullish direction.  

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