To successfully trade this extremely volatile currency pair, you need to be very cautious because its enormous unpredictability can hurt your trading deposit.
A relatively high spread is a significant downside of this currency pair. However, it’s not a problem at all since its extreme volatility offsets it. By the way, we can also classify it as a cross pair.
The given currency pair displays the value of the South African currency denominated in JPY. It’s possible to trade this currency pair 24/7. You’d better trade this asset in the Asian trading session.
Japan’s economy is one of the most developed around the globe. This Asian country is known as a primary supplier of brand tech products to foreign markets. This country doesn’t have its raw materials, it actively imports them, and it makes it extremely dependent on their prices. Expensive natural materials suppress the Japanese yen. The growing cost of oil, metals, and other resources can have a massive influence on Japan’s economy.
As for South Africa, it’s a pure regional power, with economic potential much inferior to Japan’s one. The services sector occupies about 67.4% of GDP. The country’s industry grabs 30.3%. South Africa is known for its well-developed manufacturing, mining, and chemical sector. Up to 2.4% of GDP is occupied by agriculture, specializing in crop production and animal husbandry.
South Africa is the number one supplier of raw materials, including iron ore, platinum, and copper.
The United States, Japan, and China turn out to be the principal trade partners of South Africa. If you want to trade this currency profitably, you should determine the significant factors impacting the quotes of this asset.
In contrast with South Africa, the Japanese economy is more diversified. What shares these countries is their high dependence on commodity markets. There’s one essential difference between them. Costly raw resources hurt the Japanese economy, while it’s beneficial for the South African economy. This knowledge will help you to earn a lot on this asset.
The interest rates of both nations influence the quotes of this asset. You require closely watching all the decisions made by their significant banks.
The release of information on changes in interest rates usually generates excellent volatility. Moreover, you require monitoring macroeconomic indicators of both countries.
You should keep an eye on the unemployment rate and other vital parameters. Eventually, most of the country’s GDP is created by exports because the domestic market of this African country is relatively small. Japan is also export-oriented. However, its local market is much bigger compared to the South African one.
This currency pair isn’t suited for traditional trading approaches. To derive decent benefits from this asset, consider those distinctive features of the countries listed above. Avoid trading this asset if you are a novice trader. Experienced traders have more chanced to gain from this asset while avoiding devastating losses.