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Trading Euros and JPY


Euros (EUR) and Japanese Yen (JPY) are among the most attractive currencies for traders. These currencies represent the market situation of their continents and will continue to do so because of their current financial situation.

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As Forex trading is all about gaining from changing currencies, these are often the preferred currency for traders who want to jump from US Dollars (USD) to a more stable currency and buying USD back as EUR improves against USD.

These currencies also represent a strong trading market other than New York. Although Sydney is also considered as they represent Australia, Sydney is often associated with the Tokyo currency market because of the sheer volume of transactions that happen in Tokyo.

Harnessing these currencies is very important for any trader as these currencies could be the basis of the expected yield of the trader. Without any knowledge of the EUR and JPY, trading becomes useless as you would have to work with currencies that could be volatile and improving but could fluctuate significantly.

The Good Side of Trading in EUR and JPY

There are traders who prefer to trade in EUR and JPY because of the time zone. The Asian Market is the first to open, followed by London and lastly, New York. Because of the time zone, JPY is already volatile long before USD will start.

Granting that you have been trading a week before, you can regain your loses through JPY and EUR. Your gains could then be used in New York which opens 4 hours before London closes.

Getting a head start in trading will provide you a good “feel” on what will happen in the next few hours. Forex could be dictated by many factors including the recent activity in different countries. JPY and EUR could be making strides and this could be an indicator that New York will also be improving.

Targeting EUR is often the aim of traders because of the scope of the currency. The currency is not only in England but in most European countries. Because of the support from different countries, it will be certainly stronger compared to USD.

The JPY on the other hand, may just be a small country, but the county’s stability is worth noting. You should be able to trust JPY in getting you out of the slump you are experiencing the previous day.

Disadvantage of EUR and JPY

The financial advantage of EUR and JPY is already there and transaction is relatively easy as this could be like any online Forex transactions.

But you are trading at a very inconvenient time. Granting that you are in mainland US, London and Japan opens 3am to noon and 7pm to 4am respectively. You should be able to transact with EUR easily as it overlaps with the New York market for four hours. This is the most volatile period because the USD and EUR trading is very active. You should be able to earn significantly because of the quick swing of exchange rates between two currencies.

The time zone in Tokyo is also a lot difficult. New York and Tokyo market will never overlap. The overlapping hours of Tokyo and London are only two hours. The final two hours of Tokyo is the most volatile between JPY and EUR. Trading with US will never be volatile and USD already has a set price.

Since you are trading in very unique hours, your concentration may not be the same. Trading until the wee hours of the morning could get the best out of you and your trading decisions may not be as planned. Although there is little danger in trading during these hours, your physical limitation should be considered.

Handling Time

Time management is very important if you are planning to concentrate on EUR and JPY. The market is open for 24 hours but that does not mean you should be open for 24 hours as well.

You could be earning a lot from Forex investments but your body will be so sick that you will end up spending all your earnings on medical bills. You have to give up a little bit to earn just the right amount with the right mind and body.

Instead of getting in the action for 24 hours, concentrate on the overlapping times. That means you can trade from 8am until noon for EUR and 10pm to midnight for EUR and JPY. You will only have a total of six hours of trading time but these hours practically sums up the currency movements for the whole day.

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When working during these hours, be sure to have a goal and a strategy. Your goal should help you set priorities while your strategy will ensure you reach that goal. Remember that these are the most volatile time of the day so expect an influx of data from different markets.

Read Next: Avoiding Currency Trading Mistakes




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