Unlike GBP/USD, a completely different scenario could be seen in GBP/JPY.
Despite the volatility present throughout the day, pound continues to aim for the level of 175.00, most likely due to the market mentality among most participants to buy on the dip.
And considering the significant difference in interest rates between GBP and JPY, a considerable amount of money will flow towards pound, thanks to the increasing buying pressure.
However, the pair tends to be very volatile, so traders should be cautious when entering and exiting the market, looking out closely at the position sizes and remaining aware that significant volatility may need to be endured.
