The article ranks the most volatile currency pairs and explains their respective characteristics, suitable trading hours and scalping tips. It also introduces recent trends in the major pairs, factors in the market environment and comparisons of trading conditions.
In the FX market, some currency pairs can move sharply over short periods. This article ranks the 5 most volatile pairs and outlines the characteristics, suitable trading hours and key points for each. It covers developments in AUD/JPY, NZD/JPY, USD/JPY, GBP/JPY and AUD/USD, along with the key background factors. On 9 November, the Australian dollar was bought back and AUD/JPY rose into the 109-yen range.
The article identifies interest-rate differentials, global risk appetite and each country’s monetary policy and economic indicators as factors influencing price movements, citing examples such as the US employment report in early November prompting dollar buying. While the RBNZ’s decision to hold rates contributed to the decline in NZD/JPY, the pair also rebounded as Asian stocks rose on 9 November.
It explains 4 trading time zones based on Japan time. The Tokyo session runs from 8:00 to 17:00, the London session from 17:00 to 2:00 the following day, the New York session from 22:00 to 7:00 the following day, and the overlapping period from 22:00 to 2:00, when liquidity tends to increase. In terms of actual movements, USD/JPY traded in the 158-yen range during the Tokyo session on 9 November, while activity was also strong during the London-New York overlap.
Scalping tips include using Bollinger Bands and ATR to gauge volatility, checking short-term trends with moving averages and MACD, watching for widening spreads and sharp moves around economic releases, using appropriate stop-losses and position sizing, and comparing trading conditions and managing costs.