GBPJPY definition

GBP/JPY is the exchange rate between the British pound and the Japanese yen, showing how many yen one pound will buy. It is a popular cross with no US dollar leg, and is known for large, fast price swings that have earned it the nickname "Guppy" and a reputation as one of the more volatile pairs traders follow. Liquidity is good for a cross but thinner than the dollar majors, so spreads run a little wider.

The pound is the base currency and the yen the quote currency, so a quote of 191.00 means one pound is worth 191 yen. A rising price means the pound is strengthening against the yen, a falling price the reverse. You trade GBP/JPY as a forex CFD, taking a position on the price rather than owning yen outright: go long if you expect the pound to rise, short if you expect it to fall. Because the yen is quoted to two decimals, a pip is the second decimal, and your result is the pips gained or lost multiplied by your position size, settled in yen.

Guppy's volatility comes from stacking two stories on top of each other: the Bank of England on the pound side and the Bank of Japan, long the home of ultra-low rates, on the yen side. The wide rate gap has made it a popular carry trade, holding the higher-yielding pound against the funding yen, which works until risk sentiment turns. When markets get nervous the yen's safe-haven bid kicks in and the pair can drop hard and fast, amplifying moves in both directions.