Carry pairs are both liquid and volatile. Pairs such as the EURJPY and USDJPY are traded all over the world, and trading activity is fast, but they are also quite volatile, as many financial players use the Japanese currency to borrow and invest in a wide range of riskier assets. As a result, when there is a market shock, these pairs react excessively, making trading decisions difficult, especially in the short time period desired by scalpers.
Carry pairs are primarily traded for the purpose of earning interest. Even though they can be scalped, it is not a good idea because spreads can grow so quickly that even a stop-loss order will not protect your account from a significant loss. The abrupt expansion of spreads is not unique to carry pairs, but it is more common, deeper, and lasts longer in carry pairs than it is in the EURUSD pair after the publication of non-farm payrolls or important interest rate decisions.
Scalping with carry pairs is not recommended for inexperienced players. Experienced scalpers can profit from breakouts and other sharp swings by trading them using standard trend following strategies.

Carry pairs are currency pairs involved in a carry trade, a popular strategy in forex trading. This strategy exploits the interest rate differential between two currencies. Traders borrow in a currency with a low-interest rate (funding currency) and invest in a currency with a higher interest rate (target currency). The goal is to profit from the interest rate differential while potentially benefiting from favorable exchange rate movements.

Common carry pairs include the Japanese yen (JPY) or Swiss franc (CHF) as the funding currency due to their traditionally low-interest rates. The target currencies often include the Australian dollar (AUD), New Zealand dollar (NZD), or emerging market currencies with higher interest rates, such as the Turkish lira (TRY) or South African rand (ZAR).

For instance, a popular carry trade might involve borrowing Japanese yen to purchase Australian dollars (AUD/JPY). The trader earns the interest rate difference between Australia's higher rates and Japan's lower rates. This differential can provide a steady income, especially when leveraged.

However, carry trades carry significant risks. Currency volatility can lead to adverse exchange rate movements, potentially offsetting interest gains. Economic changes, geopolitical events, or shifts in central bank policies can also impact interest rates, altering the trade's profitability. Hence, while carry pairs can offer attractive returns, they require careful risk management and a thorough understanding of market dynamics.