The term “Dragon” is used for the currency pair of the British pound and the Japanese yen. There are other slang words as well, such as “geppy,” “beast,” and also the “widow maker” for the exchange rate among the two. All these names prove that it is best to trade gbp jpy currency pair with care.
Why would they call it “Dragon”?
Well, Dragon often refers to something scary yet exciting to watch. This gbp jpy currency pair is known for its most famous property, “volatility.” It is one of the most volatile currency pairs out there, and there are a lot of mixed signals associated with trading the Dragon.
The Dragon is famous for its extreme volatility. At one moment, it might have the potential for big success, and at the same moment, it might cause a significant loss. If you have inadequate risk management and tight stops, it will kill your account in days.
Beginners are often attracted to it because of the charm of significant success. But this is not for the beginners. It is the game for experienced traders. GBP/NZD has similar behavior.
How to trade gbpjpy?
Trading the dragon pair requires good risk management skills and extreme care. It is known to have an average of 150 pips per day, which goes up to 200 some days. Lot sizes should be small, and stop losses should be set wide. Some traders work in a way that they cut their trade size to almost 1/3 of the normal trade size. This helps if you are aiming for the higher targets with gbp jpy currency pair.
How to start?
It takes time to learn the gbp jpy trading strategy, but with consistency and passion, it can be done. This moves with this pair happen quickly, and they are big moves. If you are a beginner, try trading with another more straightforward pair to get the idea of forex trading. The more experience you get, the better you will be with the gbp jpy currency pair.
Even if you do have some experience, start carefully with small steps. Start with “toe in the water” trades and stick to the trade for two to three weeks before going for bigger targets. Everyone loves to have pips quickly. But with trading the dragon pair, the pips can come and go fast. If you have understood that, you will good.
The Dragon Pattern: 
Traders also rely on the dragon pattern for pound to yen trading. It is a simple pattern that shows the technical analysis of reverse price models and the present prices to predict future tendencies.
Usually, this pattern is made of five elements: a head, two feet, a hump, and a tail. This all makes a trend line from the head to the highest point of the hump. Traders consider this pattern for having the idea of what can happen next. They trade accordingly then.
No matter what strategy you use, you must always be careful before selling or making a purchase for gbp jpy currency pair. It can betray you sometimes. So, the better approach is to learn first and then apply.
