Definitely one of the more volatile and tougher pairs to trade Does anyone have any thoughts as to exactly why this pair is tougher? Is it just the simple of combo of volatility monsters like Euro and Yen or is there some other reason for the difficulty factor?
I don't trade FX much, but what about the fact that the yen is / can be a carry trade currency? And aside from the current macro level effects on both currencies, its about the only theory I have.
The yen pairs are more inherently volatile, at least in my limited experience with them since 2005. Give them a wide birth.
Like diiferent stocks or other vehicles, different pairs have their own personality, dont worry about it find one you like.
once in a week, i will put up ATR (Average True Range) indicator to compare the average pips movement in 15mins, 60mins, 4hrs, Daily timeframes on all the major pairs i traded. the ATR gives a idea which is more volatile and which is dead ..... e.g. EUR/GBP. you can also have ATR permanently on chart as a stop loss strategy but i don't use it this way. another thing u can do is study the pips movement at this site, the left column has several choices e.g. pip movement by hour of day, so u can decide what time to trade what pairs. http://www.autochartist.com/index.php/en/products-and-services/powerstatsmenu.html
http://4.bp.blogspot.com/_buPOR1D4e...Bqk/lQh669E5a4w/s1600-h/averagedailyrange.jpg http://2.bp.blogspot.com/_buPOR1D4eXw/Szlhup7cEfI/AAAAAAAABqc/zfaCXaCqE6U/s1600-h/ranges2009.jpg these comparison might be useful too.
eur/jpy isnt hard its the same as the other jpy pairs ... stop lookin at the one minute zoom out to the daily and watch the converging and diverging interest rate differentials .... just like every other currency