GBPJPY (GBPJPY^)

Pairing – The amount of Japanese yen (JPY) that one can buy for every Great British pound (GBP).

Position

GBP – World’s fourth most traded currency

JPY - World’s third most traded currency

Important factors

• Economic factors – The yen is most likely to be affected by economic issues within Japan, but the currency is traditionally stable, making it a popular reserve currency option.
• Commodities – The pound is more susceptible to being affected by the prices of commodities such as coal, oil, and aluminium, but the yen can also see changes when the price of commodities associated with the automotive industry change.
• Reserve currencies – Both currencies are safe-haven options, although the Bank of japan is more likely to intervene in such circumstances.