The GBP/JPY, also known as Geppy or the Beast, is a highly volatile but important currency pair as far as forex traders are concerned. Trading the Pound Sterling against the Japanese yen, this pair is a close one to watch to gauge the economic health and monetary policies in two key markets - the UK and Western Europe as well as Japan and Asia Pacific.A highly volatile pair, GBP/JPY offers great potential for profits but it also comes with high risks and may not be a great forex pair for newbie traders. Unlike the majors, the Beast can see high levels of price action on the release of market moving events, and can offer traders ample opportunities to earn many pips, if traded carefully.Like most other forex pairs, GBP and JPY's exchange rate is also influenced by key economic events, political developments and central bank decisions on monetary policy and stimulus. In addition, this pair also sees significant movement when energy commodities' prices turn volatile, as the UK is a leading exporter of crude oil while Japan is one of the top energy consumers in the world.Trading the Geppy requires quite a bit of expertise in understanding charts and indicators while coming up with a reliable trade plan. Pound Sterling to Japanese yen offers one of the highest risk/reward opportunities in the forex market and while an effective trading strategy can help traders reap high profits, unexpected volatility can also turn trades towards steep losses just as quickly.