If you are seeking high volatility in binary options trading, I advise you to consider the AUD/JPY currency pair.
This financial instrument shows the relationship between the Australian dollar and Japanese yen. If the Australian dollar rises, the exchange rate goes up. If the Japanese yen rises, the exchange rate of the currency pair falls.
THE TIME OF AUD/JPG
To make a long-term forecast of this currency pair movements is rather difficult. This is because of its high sensitivity to political and economic events. The exchange rate quite often moves opposite to the forecast made based on the fundamental or economic analysis.
AUD/JPY reveals the highest sensitivity to the key interest rate set by the National banks of Australia and Japan. If the key rates are forecast to remain unchanged, the currency pair consolidates until other news reports are released.
The peak of this currency pair trading falls on the Asian trading hours during working hours of the Bank of Japan and the National Bank of Australia.
80 pips is an average move of the AUD/JPY during a session.
The Levers of Influence on AUD/JPG
The United States dollar and business do not directly affect AUD/JPY currency pair because the largest volumes are traded during the period when the U.S. and EU banks are closed.
One of the main factors having a significant impact on the exchange rate of the AUD/JPY is the price of gold. This is because Australia exports large volumes of this precious metal.
The second factor affecting significantly the AUD/JPY is crude oil. Its price impacts the yen because the economy of the land of the rising sun depends on the volumes imported.
Besides, the exchange rate of the AUD/JPY is affected by economic events in these two countries. The currency pair typically shows a strong reaction to the decisions of the Bank of Japan and the Royal Bank of Australia. Depending on the decisions made, the AUD/JPY takes one of the two directions.
The economy of a country directly depends on the employment rate, gross domestic products (GDP) and consumer price index. They impact monetary policy and hence the exchange rate of the national currency.
The trade balance of Australia is one more factor influencing the price of AUD and the exchange rate of the currency pair. Australia is an export and import state. This means that export exceeds import. The change of this balance impacts the exchange rate of the Australian dollar. Decrease in export as well as increase in import is a negative factor.
The Japanese yen is affected by the inflation rate in the country. Consumer spending shows how much the Japanese spend. The important figure like for as well as for the Australian dollar is the trade balance. In Japan like in Australia export exceeds import. When doing analysis, you need to take this into account.
The Tankan survey is released quarterly. The survey provides purchasing manager’s index and business sentiment. The yen rises if the sentiment is upbeat, and the downbeat sentiment makes the yen fall.
This instrument, in experts’ opinion, is not for inexperienced investors. However, it doesn’t mean that you should avoid trading it. You just need to know the factors influencing the exchange rate of this currency pair and perform analysis. To make a profit, you need to learn thoroughly the basics of the fundamental and economic analysis of the AUD/JPY.
How to Make a Profit on AUD/JPY
To make a profit on the AUD/JPY, I advise you to try options as this is the only instrument that can yield a 70% and more in 5-10 minutes. You can even invest in binary options for 60 seconds.
If you want your investment in a binary option to return a profit, you need to forecast accurately the direction the price will take during a certain period. If the price falls or rise in line with your forecast, you get a return immediately.
For instance, Grand Option, the reliable modern broker, offers binary options on the AUD/JPY. Despite the European trading hours, this currency pair is available for investments. I make a decision to follow the trend and invest for 8 minutes. I click HIGH as I expect the price to go up:
If the price of the AUD/JPY rises even by 0.001 during 8 minutes, I will make a 70% profit.
After 8 minutes, I see the price of the AUD/JPY has risen, and I’ve made a $56 net profit:
To make a profit on binary options is not difficult. Anybody can cope with it!