GBP/JYN volatility

[forexgump10]

I would like to learn what the most important factors are that are responsible for the volatility in currency pair GBP/JYN. As a newbie I know to stay away from that pair, but I would like to do some research. If anyone can point me in the right direction, I would be grateful. Greetings from Amsterdam, Boyd

 

[Pipmaster]

GBP/JPY is the pair that represent carry trade interest the best. As a result the pair is extremely volatile due to the volume of trades (interest). Especially at the moment. The market is on the verge of a large sell off. This would involve money being taken out of riskier assets such as equities and higher yielding currencies, causing carry traders to sell these higher yielding currencies; in turn strengthening the carry trade low yielding favourites such as the Yen and the Swiss Franc.

 

[forexgump10]

Thanks, Boyd