GBP/JPY

Pound versus Yen or JPY, the British Pound (GBP) versus the Japanese Yen (JPY), sometimes known as the Geppy, Beast or Dragon, is a highly volatile pair. The pair is described as a ‘cross’ because the US dollar is not used when calculating the exchange rate. Historically regarded as a low yielding currency, the JPY is often used as a funding currency. This is a strongly trending pair – a move of 1,000 pips is not unusual - and highly sensitive to risk on or risk off sentiment. As the Japanese yen is considered to be a major safety currency, this pair tends to drop when people get nervous about the near future.