By In 2022, one of the most profitable currency pairs in the market for trading is the USD/JPY. The Japanese Yen is the third most-traded currency in the world after the U.S. dollar and the Euro. During the period of market stress, it tends to appreciate in value against the U.S. dollar, and this is why it has gained the status of being a safe haven currency for traders across the globe. In fact, its popularity as a safe haven status increased after the financial crisis that took place around the world in 2008. Today, in 2022, many traders in the financial markets favor the Yen currency because it has high liquidity and low-ask spreads in the forex market.
Kavan Choksi Japan-a business and finance expert, speaks on the USD/JPY pair
Kavan Choksi Japan is a highly popular investor, wealth consultant, and business management expert with valuable knowledge in finance and economics. He states that the financial markets are not for traders with no financial education about how currency pairs work and the overall market in general. You must be informed about world events that impact the forex markets and how the currency pairs behave.
Track peak times to get the most out of your trading investments
Now, when it comes to trading with the USD/JPY pair in the global financial market, the most obvious question that traders ask is when they should conduct the trade to optimize returns from their investments. According to him, you must target this currency pair when the financial market is at its peak. The perfect time for you to trade is when you track profitable price windows of the trade. Though the forex market is available to the trader 24/7, you should never forget that you are dealing with different time zones in foreign markets.
The above is a secret that successful traders hardly divulge when it comes to earning profits from the currency pair trading markets. In short, timing the market trade is crucial for your success as a forex trader.
What are the time periods you should avoid?
As a trader, he recommends there are some time periods during the day that a trader should avoid unless an immediate reaction needs to be taken due to the presence of specific market factors. For instance, if you are trading with the USD/JPY currency, ensure you avoid the GMT time of 15:00 to 17:00 as the market in Tokyo is nearing its closure for the day, and the markets in New York and London are yet to open for trade.
Likewise, Kavan Choksi Japan advises you should avoid the time period when the markets in New York have just shut for the day, like, for instance, 21:00 to 23:00 GMT. London is sleeping during this time, and the market in Tokyo is yet to open for trading for the day. In short, savvy traders know that quiet markets do not give them a good potential for trading returns, so it is best to stay away from such times, especially for the USD/JPY currency pair.