Why do some traders prefer trading currency pairs like EUR/JPY over EUR/USD?

While EUR/USD is one of the most popular and liquid currency pairs in the world, some traders prefer to trade pairs like EUR/JPY—and here’s why:

Higher VolatilityEUR/JPY tends to be more volatile than EUR/USD. For traders who thrive on price movement and want more trading opportunities, that extra volatility can mean bigger potential profits (though it also means more risk).

Diverse Market BehaviorEUR/JPY is influenced by different economic and geopolitical factors than EUR/USD. Japan’s economy, Bank of Japan policies, and Asia-Pacific market sentiment all come into play. This gives traders the chance to diversify their strategies.

Technical Trading OpportunitiesMany traders find that EUR/JPY respects technical levels (like support, resistance, and Fibonacci retracements) very well. This makes it attractive for technical traders who rely on chart patterns and indicators.

Hedge or Diversification ToolSome use EUR/JPY to hedge their EUR/USD positions or to gain exposure to the Japanese yen without directly trading USD/JPY. This adds flexibility and depth to their portfolio.

Reaction to Global EventsThe yen is often seen as a "safe haven" currency. During times of global uncertainty, EUR/JPY can react very differently compared to EUR/USD, offering unique trading opportunities.

So while EUR/USD is great for steady, lower-risk trades, EUR/JPY attracts traders looking for more action, different influences, and technical setups. If you’re learning how to trade EUR/USD, understanding the differences between currency pairs like these can help you choose the one that fits your strategy best. It all comes down to your trading style and what kind of opportunities you’re after.

I’ve been focused on EUR/USD, but EUR/JPY sounds interesting; especially with the higher volatility and different factors. I might look into it more as I keep learning. Thanks for the insight!

Good points. I trade both pairs but approach them differently. EUR/USD is smoother and more predictable. EUR/JPY moves faster and can offer bigger opportunities—if you manage risk well.

I personally focus on XAUUSD and share verified signals from my account, with full performance metrics available. If you're into gold trading or want to see how I approach it, feel free to check it out.