The EUR/JPY currency pair offers acumen day traders. The volatility and liquidity need to profit within the forex space. However, the pair can swing in reaction to Eurozone debt crisis announcements, economic data releases, policy decisions, and trends in market sentiment.
EUR/JPY is among the foremost popular pairs within the international exchange market. In fact, it indicates approximately 3% of the general daily transaction. Moreover, it’s indicated because the seventh-highest traded currency pairs within the forex market. Both traders and investors can leverage the potentials of the EUR/JPY currency pair as they both carry a high degree of volatility.
- Best Time To Trade in EUR/JPY
Although you’ll trade EUR/JPY at any time of the day, to leverage the foremost benefit, you want to trade when the pair is most volatile. Between 7:30 and 15:30 is that the time when the currency pair trade is that the busiest.
- Factors Impacting EUR/JPY Rate:
When it involves making the foremost lucrative trade with this pair, it’s important to know what influences its rate.
- Stock indicator – Unsurprisingly, the pair is taken into account a number one indicator for stocks.
- Volatility – The EUR/JPY pair also displays high levels of volatility. As a result, there’s many pip movement and opportunities to take advantage of steep price fluctuations.
- Relative predictability – Whilst some currency pairings are well-known for misleading signals, the direction of the EUR/JPY is usually more predictable. Consequently, EUR/JPY signals and reversals are often easier to identify than in other forex pairs.
- Competitive spreads – you’ll also find this is often a currency pair that comes with relatively low spreads, which could all add up to greater end-of-day profits.
- Diverse trading vehicles – As a liquid, cash-rich pair, day traders can enjoy variety of various trading vehicles, including ETF, futures and options. As a result, this might mean greater opportunities to get profits.
- Availability of resources – In some ways , technical analysis today is simpler than ever before. This is because you’ll analyse graphs and candlestick charts with customized indicators and complicated trading tools. Furthermore, conducting Elliott wave analysis is more straightforward, for instance . You also have access to knowledge rich forums where both daily and long-term forecasts are going to be offered.