For the past year there have been some nice trends to trade in g/y and e/y. This is because the carry trade has been the main theme so when USD/JPY was going up so was GBP/JPY and it also followed it down, but often the trend was even stronger. GBP/USD has been choppy and hard to trade because it just reflected the differentials between GBP/JPY and USD/JPY. It wasn't always so. It used to be easier to follow the trends in GBP/USD and USD/JPY because dollar strength and weakness would be the main theme. That's what happened on Friday. USD/JPY was strongly up and GBP/USD was strongly down. GBP/JPY was just choppy. When was the last time you saw USD/JPY go up so strongly and GBP/JPY go down? It could be the start of things to come. If the dollar strengthens in the new year we'll see GBP/USD and EUR/USD go down strongly and USD/JPY go up strongly. This would leave the g/y and e/y crosses very choppy and more difficult to trade. Maybe all those systems that have been making a packet from g/y over the past year (supernova, Imran's etc) won't do so well next year.
