Skip to content
All library documents

Testing a USD/JPY Strategy Around Japan’s Gotobi Payment Dates

Article arXiv papers · Author: Hiroki Bessho et al.
Read the original

Summary

This study examines whether traders can act on the Gotobi anomaly: a reported tendency for USD/JPY to rise toward 9:55 on Japanese dates divisible by five. It focuses on a practical question: whether a strategy based on that pattern remains valid once investors know about it. That framing matters because a recurring market effect may change as participants begin trading on it.

The document also discusses a possible economic implication. If Japanese companies continue making payments on Gotobi dates as a business custom, the authors suggest that FX traders could capture value through the associated arbitrage opportunity. The description does not provide the strategy’s entry and exit rules, data period, transaction costs, performance results, or tests of whether the effect persists after recognition. It therefore raises a testable trading and market behavior hypothesis, but does not establish from the information given whether the strategy is profitable or whether corporate wealth actually leaks to traders.

Key ideas

  • The study examines a reported rise in USD/JPY toward 9:55 on dates divisible by five.
  • It asks whether trading on the Gotobi pattern remains viable when investors recognize it.
  • The authors connect customary payment timing by Japanese companies to a potential FX arbitrage opportunity.
  • The supplied description gives no strategy rules, cost analysis, or empirical performance figures.

Tags

ForexArbitrageStatisticsBacktesting
Full text
# Forex Trading Strategy That Might Be Executed Due to the Popularity of Gotobi Anomaly


# Forex Trading Strategy That Might Be Executed Due to the Popularity of Gotobi Anomaly









Our previous research has confirmed that the USD/JPY rate tends to rise toward 9:55 every morning in the Gotobi days, which are divisible by five. This is called the Gotobi anomaly. In the present study, we verify the possible trading strategy and its validity under the condition that investors recognize the existence of the anomaly. Moreover, we illustrate the possibility that the wealth of Japanese companies might leak to FX traders due to the arbitrage opportunity if Japanese companies blindly keep making payments in the Gotobi days as a business custom.

Shown in full with attribution under the source's licence. Licence: abstract CC0

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.