When the largest block of nations in the financial world wants to talk – you listen, and when they want their currency traded, you would likely be wise to do so.
For sheer financial might alone, no nation can match what the European block can, not even the US or China rival their ability in various trading fields, 28 nations trading freely between each other and aiding each other through financial hardships can create one hell of an economic force, and that is exactly the case with the EU.
With 18 of the 28 member states currently forming the “Eurozone” and using the Euro as their currency the potential for financial growth is practically limitless.
The Euro and EU are not without their respective issues though, the onset of the global financial crisis around 2007-2008 hit quite a few nations in the EU very hard, most notably Spain and Greece who’s respective economies took a great hit which they have yet to completely recover from, both nations are in an incredible amount of debt to the EU itself and have had to undergo severe financial measures in an attempt to curb some of that debt.
That is perhaps also the EU’s and Euro’s biggest potential downfall – in essence, what makes it strong can also kill it: the very spirit of cooperation on multiple levels usually serves to benefit it, however, as recent cases prove – it can also cause an unusual amount of risk for member nations even if they are not in any sort of financial hazard.
To maintain its continued growth and to help member nations the EU works tirelessly to export quite a large amount of its various products, as anything from fresh produce to luxury cars go out to all corners of the globe, with one of those corners being Japan.
As we have discussed elsewhere on the site, Japan’s financial policy mostly hinges on exporting of its goods and keeping the Yen down within a manageable range (or what the BOJ determines to be a manageable level), having said that, Japan still deals quite a bit in importing of certain goods and vital products, and one of the main beneficiaries of that is the EU, and as a result the Euro.
Very similar in its trading style to the GBP-JPY pairing, the EUR-JPY is also quite volatile, so might not be best suited to the faint of heart, but if you’re looking to make a few short terms trades and want to maximize your profit potential on binary options, this would be one of the better pairings to consider, as long as you include the risk in your possible outcome “math”.
While not escalating to the levels of volatility which earned the GBP-JPY the nickname of “Widow-Maker”, the EUR-JPY pairing can cover large rises and drops in a particularly short time span, however, most expert brokers might argue that while the Yen is the more volatile here the Euro acts mostly as the relaxed and predictable side of the equation, so in essence we have one part of the pair that is volatile and another that’s quite solid and mostly predictable, which, in all honesty is a trader’s dream scenario, assuming the trader in question is able to properly “read” the market.
Trading in this binary option can be a great success story if you are mindful of economic conditions, stories and movements coming from Japan and the EU, as with any other pairing containing the Yen, you should always be mindful of the BOJ interfering in its price points, and while that might not be the case with the Euro, you should be mindful of any major movements in any of the EU nations, as those will impact the Euro’s mobility.
It is not for the cautious trader, but with this pairing you can easily reap enough rewards to help you cover the gap from Europe to the shores of Japan.