GBP/JPY β The 'Dragon'
GBP/JPY is nicknamed "the Dragon" for its wild volatility. It combines two independently volatile currencies: GBP (sensitive to UK economic data and BoE policy) and JPY (safe-haven dynamics and BoJ policy). Daily ranges of 100β200 pips are common; major news events can produce 400+ pip moves.
As a JPY-quoted pair, pip size = 0.01. At USD/ZAR 18.00 and GBP/JPY ~195, pip value β R105/pip per standard lot.
| Lot Size | Formula | At GBP/JPY=195, USD/ZAR=18 |
|---|---|---|
| 0.01 | 1,000 JPY Γ· USD/JPY Γ USD/ZAR | ~R1.05/pip |
| 0.10 | 10,000 JPY Γ· rate Γ rate | ~R10.50/pip |
| 1.00 | 100,000 JPY Γ· rate Γ rate | ~R105/pip |
GBP/JPY pip value changes as both GBP/JPY and USD/JPY move. Use the live calculator above for current values.
| Instrument class | Cross pair |
|---|---|
| One pip | 0.01 |
| Standard lot | 100,000 GBP |
| Value of one pip per lot | 1,000 JPY β convertingβ¦ |
| Notional value of one lot | β |
| Margin on one lot at 1:30 / 1:100 / 1:500 | β |
The last two rows move with the market and are filled in from the live rate; everything above them is fixed by the contract. Leverage available to you depends on your regulator and account type β check it in the platform before you size a position.
| Currency | Central bank | Policy rate | What moves it |
|---|---|---|---|
| GBP | Bank of England (BoE) | Bank Rate | MPC Β· CPI Β· jobs data |
| JPY | Bank of Japan (BoJ) | Short-term policy rate | BoJ Β· CPI Β· intervention signals |
Spreads are tightest when two sessions are open at once and widest when one desk has gone home and the next has not arrived. The shaded band is the overlap.
GBP/JPY and SA Traders
GBP/JPY is one of the few major pairs where both legs are equally driven by scheduled events: UK CPI (09:00 SAST) and BoE decisions (~13:00 SAST) move GBP; BoJ decisions (typically 04:00-05:00 SAST) move JPY. The BoJ's historic ultra-loose policy and occasional surprise changes create the sharpest moves. Many SA traders trade GBP/JPY for its combination of wide daily range and relatively tight spreads compared to exotic pairs.
Values are for educational purposes. Verify specifications with your broker before trading. Full pip value table β
