GBP crosses/JPY crosses/Technical Analysis/Trade Ideas

GBP/JPY: Short-term trade idea

     If EUR/JPY is stalling ahead of 108.00 but EUR/GBP is eyeing stops above .8165, then selling GBP/JPY might not be a bad idea? Cheap trade; sell at 132.45 with stop above 132.70 and add to shorts below 132.30?

  1. Can’t really complain about that, I can remember the time when it was between 10/15 pips in interbank mkt but now seeing 2.5/3 pips on interbank platforms; if you are getting only 1 pip wider on retail platform then that’s pretty good imho

  2. I have a spread of 1.4 pips for GBP/JPY on one of my Japanese accounts (a Hirose platform). I think the spread is basically fixed, although it might widen out at times.

    Hirose is my favourite Japanese broker actually, they have won some customer awards here, and they have an outfit in the UK now too.
    http://hiroseuk.com/

    Looks like they have 1.7 pips spread there:
    http://hiroseuk.com/trade/trading_terms/rates_conditions.php

    I can’t open an account with them in the UK because I’m domiciled in Japan, but for the rest of you who might be interested in an account with a Japanese broker that has been doing well in the competitive Japanese market it could be worth a look.

  3. They are absolutely ridiculous spreads and there’s no way these guys can make money on that imho. Are they presuming that most of their accounts will eventually blow up anyway so its a matter of giving them any spread they feel like?? I guess that’s the cynic in me coming to the fore

  4. Personally my trading with Hirose over the past couple of years has resulted in some tidy profits, and they seem popular here.

    To make money they must be doing good volume – maybe this is possible in Japan given the size of the retail market?

    I think I read somewhere that the top Japanese broker alone has around 3 times the number of accounts as the entire US retail market. (I guess Americans prefer stocks to forex, and vice versa with the Japanese after their big stock bubble popped?)

    Of course their UK operation might be running in the red, I’m not sure about that…

  5. Showing my age here, but back in Frankfurt in late 1980’s we started up a direct interbank market in GBP/JPY. It was between 10/15 pips in GBP10 mio and that seemed at the time to be a tight spread! Of course volatility was much higher and cable couild often travel 500 pips in a session (up and down and around) but I still am amazed that these brokers can sustain such tight pricing. All good for the consumer I suppose

  6. Yes. There was a fear that the leverage restrictions put in place in Japan would eventually force spreads to widen as volumes decreased, but although I hear there has been some consolidation amongst the brokers (not any that I use so far as I know), the recent trend has still been towards ever decreasing spreads. Unfortunately it looks like the US has got the regulations completely wrong and is damaging the market there rather than aiding it…

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