Trading GBP/JPY
The GBP/JPY or ‘Geppy’, as it is sometimes pronounced, is a forex currency pair consisting of the Great British Pound and the Japanese Yen. Other common slang names include the ‘dragon’ and the ‘beast’, so-called for its infamous volatility. Trading this pair can have serious upside for experienced investors, but historical data shows that dramatic shifts in the exchange rate are common. In this article, we’ll discuss exactly what it means to trade GBP/JPY, including strategy tips. We’ll also dive into the history of the pair, its fundamentals, characteristics and what impacts its price.
GBP/JPY Trading Brokers
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Pepperstone provides forex spreads on the EUR/USD averaging just 0.12 pips with their Razor account. This is highly competitive. Their extensive portfolio includes over 100 currency pairs, which exceeds what most rivals offer. Furthermore, Pepperstone stands out by offering three unique currency indices: USDX, EURX, and JPYX, which are rare on other platforms. They have been recognised with our 'Best Forex Broker' award twice.
GBPUSD Spread EURUSD Spread GBPEUR Spread 0.4 0.1 0.4 Total Assets FCA Regulated Platforms 100+ Yes Pepperstone Trading Platform, MT4, MT5, cTrader, TradingView, AutoChartist -
XTB offers over 60 currency pairs with competitive spreads, averaging 1 pip on major pairs. The xStation platform is user-friendly, featuring over 30 indicators in its charting package and a variety of order types, supporting diverse trading strategies and risk management.
GBPUSD Spread EURUSD Spread GBPEUR Spread 1.4 1.0 1.4 Total Assets FCA Regulated Platforms 70+ Yes xStation -
IG provides an extensive selection of over 80 currency pairs through its own web platform, mobile app, or MetaTrader 4. For advanced charting and forex analysis, the ProRealTime software is available. Testing shows forex spreads are competitive, beginning at 0.1 pips on major pairs such as EUR/USD.
GBPUSD Spread EURUSD Spread GBPEUR Spread 0.9 0.8 0.9 Total Assets FCA Regulated Platforms 80+ Yes Web, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral, ProRealTime -
IBKR offers a vast range of over 100 forex pairs, including major, minor, and exotic currencies, outstripping most competitors except CMC Markets. Trading is available across multiple platforms with institutional-grade spreads beginning at 0.1 pips. There are also 20 sophisticated order types, such as brackets, scale, and one-cancels-all (OCA) orders, enhancing trading strategies.
GBPUSD Spread EURUSD Spread GBPEUR Spread 0.08-0.20 bps x trade value 0.08-0.20 bps x trade value 0.08-0.20 bps x trade value Total Assets FCA Regulated Platforms 100+ Yes Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower -
Vantage provides over 55 currency pairs, exceeding the industry norm, giving traders ample opportunities. With a robust liquidity pool, forex spreads start at 0.0 pips on the ECN account, often beating other options. Additionally, there are no commissions, deposit fees, or hidden charges.
GBPUSD Spread EURUSD Spread GBPEUR Spread 0.5 0.0 0.5 Total Assets FCA Regulated Platforms 55+ Yes ProTrader, MT4, MT5, TradingView, DupliTrade -
FOREX.com remains a leading FX broker, providing 80 currency pairs with highly competitive fees. EUR/USD spreads can reach as low as 0.0, with a $7 commission per $100k, making it a standout choice.
GBPUSD Spread EURUSD Spread GBPEUR Spread 1.3 1.2 1.4 Total Assets FCA Regulated Platforms 84 Yes WebTrader, Mobile, MT4, MT5, TradingView -
Eightcap provides over 50 currency pairs, matching the industry norm but falling short of leaders like CMC Markets, which offers more than 300. Nonetheless, Eightcap distinguishes itself with institutional-quality spreads starting from 0.0 pips on major pairs such as EUR/USD. The broker's competitively low commissions at $3.50 per side further enhance its appeal. Eightcap also equips traders with comprehensive forex data, including essential fundamentals, bullish and bearish signals, and a calendar monitoring significant foreign exchange market events.
GBPUSD Spread EURUSD Spread GBPEUR Spread 0.1 0.0 0.1 Total Assets FCA Regulated Platforms 50+ Yes MT4, MT5, TradingView
Pepperstone
XTB
IG
Interactive Brokers
Vantage FX
Forex.com
EightcapSafety Comparison
Compare how safe the Trading GBP/JPY are and what features they offer to protect traders.
| Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✘ | ✔ | |
| XTB | ✔ | ✔ | ✔ | ✔ | |
| IG | ✔ | ✔ | ✔ | ✔ | |
| Interactive Brokers | ✔ | ✔ | ✘ | ✔ | |
| Vantage FX | ✔ | ✔ | ✘ | ✔ | |
| Forex.com | ✔ | ✔ | ✘ | ✔ | |
| Eightcap | ✔ | ✔ | ✘ | ✔ |
Payments Comparison
Compare which popular payment methods the Trading GBP/JPY support and whether they have trading accounts denominated in British Pounds (GBP).
| Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
|---|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
| XTB | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| IG | ✔ | ✔ | ✔ | ✘ | ✘ | ✘ |
| Interactive Brokers | ✔ | ✔ | ✘ | ✘ | ✘ | ✘ |
| Vantage FX | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| Forex.com | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| Eightcap | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
Mobile Trading Comparison
How good are the Trading GBP/JPY at mobile trading using apps or other mobile interfaces.
| Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
|---|---|---|---|---|
| Pepperstone | iOS & Android | ✘ | ||
| XTB | iOS & Android | ✔ | ||
| IG | iOS & Android | ✔ | ||
| Interactive Brokers | iOS & Android | ✔ | ||
| Vantage FX | iOS & Android | ✘ | ||
| Forex.com | iOS & Android | ✘ | ||
| Eightcap | iOS & Android | ✘ |
Beginners Comparison
Are the Trading GBP/JPY good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?
| Broker | Demo Account | Minimum Deposit | Minimum Trade | Support Rating | Education Rating |
|---|---|---|---|---|---|
| Pepperstone | ✔ | $0 | 0.01 Lots | ||
| XTB | ✔ | $0 | 0.01 Lots | ||
| IG | ✔ | $0 | 0.01 Lots | ||
| Interactive Brokers | ✔ | $0 | $100 | ||
| Vantage FX | ✔ | $50 | 0.01 Lots | ||
| Forex.com | ✔ | $100 | 0.01 Lots | ||
| Eightcap | ✔ | £100 | 0.01 Lots |
Advanced Trading Comparison
Do the Trading GBP/JPY offer features that allow for more advanced trading strategies?
| Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
|---|---|---|---|---|---|---|---|
| Pepperstone | Expert Advisors (EAs) on MetaTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✘ | ✔ | ✘ |
| XTB | - | ✔ | 1:30 | ✘ | ✘ | ✔ | ✘ |
| IG | Expert Advisors (EAs) on MetaTrader, build your own on ProRealTime | ✔ | 1:30 (Retail), 1:222 (Pro) | ✔ | ✔ | ✔ | ✔ |
| Interactive Brokers | Capitalise.ai, TWS API | ✘ | 1:50 | ✘ | ✔ | ✔ | ✔ |
| Vantage FX | Myfxbook AutoTrade, Expert Advisors (EAs) on MetaTrader | ✘ | 1:30 | ✔ | ✘ | ✘ | ✘ |
| Forex.com | Expert Advisors (EAs) on MetaTrader | ✘ | 1:30 | ✔ | ✔ | ✔ | ✘ |
| Eightcap | TradingView Bots | ✘ | 1:30 | ✔ | ✘ | ✔ | ✘ |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the Trading GBP/JPY.
| Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
|---|---|---|---|---|---|---|---|---|---|
| Pepperstone | |||||||||
| XTB | |||||||||
| IG | |||||||||
| Interactive Brokers | |||||||||
| Vantage FX | |||||||||
| Forex.com | |||||||||
| Eightcap |
Our Take On Pepperstone
"Pepperstone is a premier trading platform, providing tight spreads, swift execution, and sophisticated charting tools for seasoned traders. Beginners benefit from no minimum deposit, comprehensive learning materials, and outstanding 24/7 support."Tobias Robinson
Reviewer
Pros
- After adding spread betting through TradingView, Pepperstone provides a seamless, tax-efficient trading experience with advanced analysis tools for financial spread bettors in supported countries.
- Support for top-tier charting platforms such as MT4, MT5, TradingView, and cTrader. These tools accommodate different short-term trading methods, including algorithmic trading.
- Award-winning customer support is available via telephone, email or live chat with response times of <5 minutes during testing and friendly agents knowledgeable about its products and trading tools.
Cons
- Despite improvements to its range of markets, crypto offerings are still fairly limited compared to other brokers who focus on this area, such as Eightcap, and there's no option to invest in real coins.
- Protection varies a lot by entity, so the experience is not equally strong worldwide. Traders onboarded through offshore arms get lighter safeguards than clients under the FCA, ASIC, CySEC or BaFin.
- Overnight holding costs are not especially competitive. That is less relevant for traders, but it could become an issue if you swing trade or hold index or forex positions for several sessions.
Our Take On XTB
"XTB excels for novice traders with its superb xStation platform, minimal trading costs, no required deposit, and outstanding educational resources, many of which are fully integrated into the platform."William Berg
Reviewer
Pros
- XTB processes withdrawals swiftly, paying within 3 business days, subject to the method and amount.
- XTB has raised interest rates on uninvested funds and introduced zero-fee ISAs (for ETFs and real shares, or 0.2% on trades over €100k) for UK clients, offering access to a wide array of markets.
- XTB offers a superb array of educational resources, such as training videos and articles, embedded within the platform to assist traders of all experience levels.
Cons
- Trading fees are competitive, with average EUR/USD spreads of about 1 pip. However, they are not as low as the most affordable brokers, such as IC Markets. Additionally, an inactivity fee applies after a year.
- It is frustrating that XTB products do not allow traders to modify the default leverage level. Manually adjusting leverage can greatly reduce risk in forex and CFD trading.
- XTB has stopped supporting MT4, restricting traders to its own platform, xStation. This decision may discourage experienced traders accustomed to using the MetaTrader suite.
Our Take On IG
"IG offers a complete package: an easy-to-use web platform, top-tier beginner education, enhanced charting via TradingView, up-to-date data, and strong trade execution for seasoned traders."Tobias Robinson
Reviewer
Pros
- IG excels with its diverse instruments, offering stocks, forex, indices, commodities, and cryptocurrencies. Additionally, it provides US-listed futures, options, and an AI Index, ensuring varied diversification opportunities.
- The web-based platform supports traders at every level, offering advanced charting tools and real-time market data vital for trading. Additionally, IG now includes TradingView integration.
- IG provides a wide range of professional and engaging educational materials, such as webinars, articles, and analyses, tailored for traders.
Cons
- In the UK and EU, negative balance protection is available. However, US clients lack account protection and guaranteed stop losses.
- Beginners may find IG's fees complicated, as they vary depending on the trades or services. This could cause confusion and unexpected costs.
- Based on tests, stock and CFD spreads remain less competitive than the lowest-cost brokers, such as CMC Markets.
Our Take On Interactive Brokers
"Interactive Brokers ranks highly for seasoned traders due to its robust charting platforms, live data, and bespoke layouts via the new IBKR Desktop app. Its competitive pricing and sophisticated order choices appeal to traders, and its wide equity options are industry-leading."Tobias Robinson
Reviewer
Pros
- While initially targeting seasoned traders, IBKR has recently widened its appeal by eliminating its $10,000 minimum deposit requirement.
- The new IBKR Desktop platform combines the top features of TWS with customised tools such as Option Lattice and MultiSort Screeners, providing an impressive trading experience for traders of all skill levels.
- IBKR offers an economical environment for traders, featuring low commissions, narrow spreads, and a clear fee structure.
Cons
- IBKR offers a variety of research tools, but their inconsistent placement across trading platforms and the 'Account Management' webpage creates a confusing experience for users.
- The learning curve for TWS is quite steep, making it tough for novice traders to navigate and grasp all its features. In contrast, Plus500's web platform is far more accessible for those new to trading.
- Support can be sluggish and frustrating. Tests reveal that you may face challenges reaching customer service quickly, which could result in delays in issue resolution.
Our Take On Vantage FX
"Vantage is an ideal choice for CFD traders looking for a well-regulated broker with access to the dependable MetaTrader platforms. With a swift sign-up process and a minimum deposit of $50, starting trading is simple and fast."Tobias Robinson
Reviewer
Pros
- Vantage upholds a high trust score through its solid reputation, backed by premier regulation from the FCA and ASIC.
- Opening a live account is both straightforward and swift, requiring under 5 minutes to complete.
- The broker recently expanded its range of CFDs, offering more trading opportunities.
Cons
- Based on tests, average execution speeds of 100ms to 250ms are slower compared to other options.
- To access optimal trading conditions, a substantial deposit of $10,000 is required. This includes a commission of $1.50 per transaction per side.
- It's unfortunate that some clients must register with the offshore firm, which provides reduced regulatory safeguards.
Our Take On Forex.com
"FOREX.com excels in serving traders of all levels, offering more than 80 currency pairs, spreads starting at 0.0 pips, and competitive commissions. Its robust charting platforms provide over 100 technical indicators and comprehensive research tools."Tobias Robinson
Reviewer
Pros
- An abundance of educational resources is available, such as tutorials, webinars, and an extensive YouTube channel, designed to enhance your understanding of financial markets.
- The in-house Web Trader remains a top-tier platform for budding traders, featuring an elegant design and more than 80 technical indicators for market analysis.
- FOREX.com provides top-tier forex rates beginning at 0.0 pips, along with attractive cashback rebates up to 15% for dedicated traders.
Cons
- Demo accounts are typically limited to 90 days, hindering effective strategy testing.
- US clients are not protected against negative balances, which means you could end up owing more than your initial deposit.
- FOREX.com's MT4 platform provides around 600 instruments, a notable reduction compared to the more than 5,500 options on its other platforms.
Our Take On Eightcap
"Eightcap excels for traders, offering diverse charting platforms, educational Labs, and AI tools. With over 120 crypto CFDs, it stands out in crypto trading and has won our 'Best Crypto Broker' award twice consecutively."William Berg
Reviewer
Pros
- In 2021, Eightcap enhanced its lineup, now providing an extensive range of cryptocurrency CFDs. It offers crypto/fiat and crypto/crypto pairs, along with crypto indices for comprehensive market exposure.
- With spreads starting at 0 pips, minimal commission charges, and leverage up to 1:500 for select clients, Eightcap delivers affordable and flexible trading opportunities. These conditions suit various strategies, such as trading and scalping.
- Eightcap excels with a suite of advanced trading tools, such as MT4 and MT5, and has recently joined the 100-million-user social trading network, TradingView.
Cons
- Despite the growing range of tools available, Eightcap lacks popular industry resources such as Autochartist and Trading Central. These provide advanced charting analytics, live news, and essential market insights for traders focused on short-term strategies.
- Eightcap must enhance its range of over 800 instruments to rival top competitors like Blackbull Markets, which offers 26,000+ assets, especially improving its limited commodities selection.
- The demo account is available for 30 days, after which it requires a request for extension. This is less convenient than XM's offering, which provides an unlimited demo mode.
GBP/JPY Explained
GBP/JPY is forex trading terminology for the value of the Great British Pound against the Japanese Yen. It is displayed as a single number. For example, if the GBP/JPY is 144, this means 1 Pound would buy 114 Yen.
The GBP is the fourth most traded currency in the world, behind the JPY in third place. Therefore, this cross pair is one of the most liquid in the forex trading world. However, it is also one of the most volatile. The Geppy trading graph is known to move dramatically, turning huge upside into loss in a short time span. The average daily range between 2014-2020 was 146 pips, compared to just 96 for the EUR/JPY.
GBP/JPY History
Any experienced forex trader knows that exchange rates are heavily influenced by world news. Keeping a keen eye on Bloomberg, Google and Yahoo Finance for political and economic changes is common. This is known as fundamental analysis. Beyond the price chart, an understanding of the history of the GBP/JPY will aid future price analysis.
The Lost Decade
The period between 1991 and 2001 is sometimes known as the Lost Decade in Japan’s economic history. The Japanese economy was stagnant in this era, with GDP growing around 1%. Other developed economies grew much more at this time. The Bank of Japan began quantitive easing in order to prevent deflation. Discussion continued into whether the Lost Decade would extend into 2021 as numerous disasters, including the 2011 Tōhoku earthquake and tsunami, plus the Covid-19 pandemic, continued to batter the JPY.
2008 Financial Crisis
In the 2008 Global Financial Crisis, the GBP/JPY showed excessive volatility beyond that seen by other currency pairs. While the EUR/USD value moved around 3,300 pips, the Dragon lost a staggering 7,000 pips at one point. The outlook was bleak for those who stopped out. But for those with the right strategy, there were profits too.
The Brexit Era
Global trade of GBP has been rocked by the vote to leave the EU. Uncertainty surrounding the British economy has reduced the desire to trade Sterling. Whilst volatility around the result in June 2016 bought profits for some, for others, Brexit meant a move away from the EU market, and therefore, less security.
To continue with up-to-date fundamental analysis on the GBY/JPY, keep an eye on economic calendars along with trading blogs and forum commentary.
GBP/JPY Trading Strategy
The best trading strategies take into account more than just news. Technical analysis involves looking at historical prices to predict the profitability of a buy or sell position in the future. UK traders use charts, indicators and signals to help identify trends. Each of the following trading strategies will involve identifying patterns in the data when trading GBP vs JPY.
Breakout Strategy
GBP/JPY is known for its extreme volatility, so many traders use the breakout trading strategy to profit from this. A breakout strategy involves monitoring market data for a break in the price level. Once a breakout is made, the expectation is the price will continue to trend in that direction. Traders who correctly forecast a trend early using the breakout method will make a profit. But, it’s important to utilise a stop loss as investing incorrectly could bring unwanted downside.
Day Trading
Day trading the GBP/JPY means never holding a position overnight. Margin and roll-over fees are charged by brokers when you hold a position outside of trading hours. Day traders typically avoid these fees by closing trades within a short time span – sometimes minutes. The best time to trade GBP/JPY is between 8am and 9am GMT when both markets are open. This is when the pair is most liquid which means tighter spreads and better prices.
Elliott Wave Theory
Technical forecast analysis based on Elliott Wave theory is popular among forex traders. Ralph Elliot developed the theory in the 1930s after an amazing prediction of a stock market bottom. Elliott describes how patterns in the data form ‘waves’ which indicate which way a market, such as the GBP/JPY, is likely to move next. Indicators and trading signals based on the Elliott Wave Theory are available for download onto your MetaTrader platform when trading the GBP/JPY.
Scalping
Scalping the GBP/JPY is a high-risk game because of the Geppy’s stark price movements. However, the strategy is also popular because of the potential reward. Scalping involves making short sharp trades that are held for a limited time period, sometimes just a few seconds, to accumulate profits. Numerous small profits add up to impressive sums if they are frequent enough. Successful scalping traders will be extremely disciplined to ensure that most trades are profitable since frequent losses can add up. Close monitoring of realtime live forex charts is vital.
Price Action
Another technical analysis strategy for trading the GBP/JPY is price action. This system involves looking at the pairs price movements on candlestick charts and setting personal thresholds which trigger actions. Traders using price action look for support and resistance lines. For example, if the current price reaches the target of 165, the trader believes it has entered a bullish phase and will continue to rise. Therefore, they will make the personal decision to go long. However, another trader might believe that a fall in value will follow. In this case, the prediction is a bearish phase and they will go short. Identifying daily pivot points helps traders build a price action strategy. Theories should be tested before executing on live trades.
Other popular strategies including utilising a difference in interest rates to perform a carry trade. The Yen tends to be a low yield currency while Sterling is high yield, making it suitable for holding positions overnight. Those with less time for analysis can utilise an Expert Advisor, i.e an automated trading robot to execute trades.
Correlations
Traders looking to understand how to trade GBP/JPY successfully need to understand correlations. Since currencies are traded in pairs and some economies are closely tied, currency pairs can move in the same direction over long periods of time. For example, in the pre-Brexit era, Sterling and the Euro might have been closely correlated as the two economies were closely tied.
The Yen tends to be negatively correlated with gold prices. Gold is seen as a safe investment in times of economic turmoil. Conversely, Yen is seen as a currency safe haven. Traders moving out of gold can sometimes move into Yen.
Correlations can change over time. Therefore it’s important to test your GBP/JPY correlation assumptions by looking at historical data. Using a forex correlation calculator can help with this.
Final Word On GBP/JPY
The key to trading the GBP/JPY is to understand the nature of the beast. Its volatility and liquidity makes it a popular pair to trade spot forex, ETFs, futures and options with. But its inherent risks should also be recognised. Keep a close eye on the Yen exchange rate forecast and daily outlook for trends that might lead to upside.
Find out more about forex trading.
FAQ
What Does It Mean To Trade GBP/JPY?
The term GBP/JPY refers to the currency pair of the Great British Pound and Japanese Yen. It is also sometimes referred to as the Geppy, Dragon or the Beast. It is displayed as a single number (e.g 144). This means that 1 GBP will buy you 144 JPY.
What Is The Best Strategy For Trading GBP/JPY?
There are many strategies for trading GBP JPY. Profitability depends on the trader’s ability to detect trends. One of the most popular is the breakout strategy. This involves analysing price charts for breakout trends. Other strategies include day trading, scalping and copying free GBP/JPY signals.
What Is The Current Price Of GBP/JPY?
The exact price of the GBP/JPY varies from minute to minute. This allows traders to make a profit between the buy and sell price. The current price can be found by looking at price and bar charts from financial news organisations such as Bloomberg, Google and Yahoo Finance.
Is The GBP/JPY Volatile?
Yes, the GBP/JPY is known to be a volatile currency pair. The daily average price movement is much larger than other majors such as EUR /JPY. This can bring upside as well as downside for traders. Stop losses are important for those choosing to invest.
What Influences The GBP/JPY?
There are many factors that influence the pip value of the GBP/JPY. Important factors include the state of the British and Japanese economies, interest rates, employment rates and national bank policy.