GBP/JPY is the king of crosses. There are many reasons why it’s popular. Looking at the Geppy again, it looks like the popularity comes from specific traders,but they aren’t always on the winning side.
Looking over and over again at the social indicators at Currensee, I see the same picture over and over again: no matter what position is taken, long or short, the outcome is negative.
GBP/JPY is a popular cross due to a few reasons, one of them being the strong moves that it makes. In a post that I wrote a few months ago, I took a deep dive into the Geppy’s popularity.
The big range of pips that GBP/JPY does every day is attractive to traders that want fast and big profits. They see that the Geppy makes 100 pips to a certain direction while EUR/USD, USD/JPY and others move only 20 or 30 pips at the same time.
These moves catch their eyes and they want fast profits. They don’t always perform a serious technical analysis, nor manage their money correctly before riding this cross.
Too often, this ends in losses, as most hasty moves turn out. It’s possible to make profits with this pair, as any other, but I think that the character of traders that pick this one up is more of the gambling type than the serious trader type.
What do you think?
You can see the social indicators for yourself by joining Currensee. It’s totally free.
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