Most volatile currency pair?

[gazuz]

In your opinion, what is the most volatile currency pair? I'm trying to look at one thats not very trendy, if it is its very very choppy..

I'm looking for the market that is really ups and downs all day. I'm looking at USDJPY right now..

anyone else have any others that would like to share? they can be as exotic as you want but the faster they move and the more volatile the better

[scorpion]

Since most currencies are coupled with USD to make a pair, 50% of volatility of any pair is that of USD. So generally speaking, EURUSD, GBPUSD and USDJPY share the majority of moves.

As I've been observing, the economic indicators moves the price. So the more frequent the data is released, the more frequent the pair moves, in other word, the higher the volatility is.

EURUSD is the most volatile pair, because EUR is affected by more countries than other pairs. For instance, GBP is affected by only UK, and JPY is affected by Japan. Since it covers many countries, EUR got affected by every news released in Europe!

That's why you often see EURUSD is choppy or has broken trend while USDJPY and GBPUSD are having nice trend. (Open up all 30M charts and see from 25 Sep to 02 Oct for yourself)

[gazuz]

True I guess, I always found USDJPY to look more choppy and less trendy though. I am looking for one because I am trading the DLM. so even little chops of ten pips up and down is what I am looking for. Look at the USDJPY you'll see how it never seems to be really as flat as some of the EURUSD moves..

[scorpion]

USDJPY is under strict control of BoJ (Bank of Japan). BoJ has the greatest buying/selling power of all central banks in the world, and more importantly it's very interested in keeping USDJPY as stable as possible until fiscal year end. At the end of fiscal year, BoJ will always shoot up USDJPY by selling trillion dollar worth of JPY for USD.

(Jan Feb and March are predictable, thanks to BOJ)

[gazuz]

are you saying BUY BUY BUY USDJPY in december and sell when satisfied?

[alpin]

How about Gbp/Jpy? Some people said this is the most profitable pair right now.

[gazuz]

alpin, what is the definition of profitable? Can we predict the market because it is trendy?

I am looking for the choppiest one that just goes and up and down and up and down with no real smooth curves

[scorpion]

Over long term, USDJPY tends to be choppy. It has narrow bottom and top compared to other pairs. But don't think of letting the loss run, hoping price will bounce back, because you think it's choppy.

In my opinion, choppy is not easy to make profit in, since I've trend following systems. They definitely won't make profit in choppy.

[gazuz]

Originally Posted by scorpion

Over long term, USDJPY tends to be choppy. It has narrow bottom and top compared to other pairs. But don't think of letting the loss run, hoping price will bounce back, because you think it's choppy.

In my opinion, choppy is not easy to make profit in, since I've trend following systems. They definitely won't make profit in choppy.

Well the whole dealer lots managment system works best in choppy markets. the sooner and more often it changes direction, the faser itll close a winning trade and open a new one

[jebigabre]

If the currency pair is choppy and doesn't trend well, wouldn't you find it difficult to make money over the long term and not the opposite? I like the EURUSD just because it trends well.