Attachments: Daily EUR/JPY analysis

Daily EUR/JPY analysis

#1,221
Aug 5, 2008 1:34pm Aug 5, 2008 1:34pm

Mets
| Joined May 2008 | Status: Trader | 60 Posts

Quoting peaches

Disliked

I would not say "no correlation", on daily its 50 % and 1h 70 %

Ignored

But it has that for reasons which you're omitting

Go ahead, try to trade the EJ by watching the EU alone, I wish you the best.

#1,222
Aug 5, 2008 1:35pm Aug 5, 2008 1:35pm

rainingpips
| Joined Jan 2008 | Status: Metered Temerity | 315 Posts

I wonder whether those tables are historic, or are updated to the actual time frame correlation of the pair .

#1,223
Aug 5, 2008 1:36pm Aug 5, 2008 1:36pm

peaches
Joined Oct 2007 | Status: Trader | 3,461 Posts

Quoting Mets

Disliked

But it has that for reasons which you're omitting Go ahead, try to trade the EJ by watching the EU alone, I wish you the best.

Ignored

no, I don´t use a currency to decide for another.

I use trend, candlestick pattern, fibo-confluence and trendlines.

#1,224
Aug 5, 2008 1:38pm Aug 5, 2008 1:38pm

rainingpips
| Joined Jan 2008 | Status: Metered Temerity | 315 Posts

Quoting Mets

Disliked

But it has that for reasons which you're omitting Go ahead, try to trade the EJ by watching the EU alone, I wish you the best.

Ignored

I don't think anyone was implying they merely traded by the movements of the other pairs...it's more of a confirmation, strength indicator for me during major news announcements, but I don't speak for Peaches. Technicals are implying continued downward trend for EUR/JPY irrespective of where EUR/USD is going.

#1,225
Aug 5, 2008 1:42pm Aug 5, 2008 1:42pm

peaches
Joined Oct 2007 | Status: Trader | 3,461 Posts

Quoting rainingpips

Disliked

I wonder whether those tables are historic, or are updated to the actual time frame correlation of the pair .

Ignored

#1,226
Aug 5, 2008 1:46pm Aug 5, 2008 1:46pm

peaches
Joined Oct 2007 | Status: Trader | 3,461 Posts

Quoting rainingpips

Disliked

I don't think anyone was implying they merely traded by the movements of the other pairs...it's more of a confirmation, strength indicator for me during major news announcements, but I don't speak for Peaches. Technicals are implying continued downward trend for EUR/JPY irrespective of where EUR/USD is going.

Ignored

decide for yourself. sometimes it seems there is a correlation,
sometimes not. But it´s true, thats not an argument for or against a
trade.

Both currencys -pairs overlayed.

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#1,227
Aug 5, 2008 2:00pm Aug 5, 2008 2:00pm

Finsbury
| Joined Apr 2008 | Status: Trader | 350 Posts

Quoting peaches

Disliked

decide for yourself. sometimes it seems there is a correlation,
sometimes not. But it´s true, thats not an argument for or against a
trade.

Both currencys -pairs overlayed.

Ignored

Hi.....if it's possible...can you post,....the indicaotr for correlationn!!??!?

Thank's a lot....

#1,228
Aug 5, 2008 2:05pm Aug 5, 2008 2:05pm

peaches
Joined Oct 2007 | Status: Trader | 3,461 Posts

Quoting Finsbury

Disliked

Hi.....if it's possible...can you post,....the indicaotr for correlationn!!??!?

Thank's a lot....

Ignored

no problem, here we go.

I closed my position and wait for daily close.

Attached File(s)

OverLayChart.mq4 9 KB | 300 downloads

#1,229
Aug 5, 2008 2:11pm Aug 5, 2008 2:11pm

Finsbury
| Joined Apr 2008 | Status: Trader | 350 Posts

thank's a lot.....

#1,230
Aug 5, 2008 3:17pm Aug 5, 2008 3:17pm

peaches
Joined Oct 2007 | Status: Trader | 3,461 Posts

I can not see a clear pattern on the daily, sorry, so there is no trade for me ej tomorrow. If price stays in the channel a sell limit order around 168,50 might be a good idea. I´ll watch out for a pattern around this area in 12 - 24 hours...

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#1,231
Aug 5, 2008 5:12pm Aug 5, 2008 5:12pm

robrub
| Joined Oct 2007 | Status: Trader | 90 Posts

humm where this babe would like to ride?

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#1,232
Aug 5, 2008 5:24pm Aug 5, 2008 5:24pm

sed34
| Joined Jul 2008 | Status: Clear Cut System Trader | 1,111 Posts

i wanted to know when is this pair most actively traded?

#1,233
Aug 5, 2008 7:00pm Aug 5, 2008 7:00pm

PipsFinder
| Joined Jul 2008 | Status: Let's Go | 188 Posts

am short from 167.50

Don't Blame Yourself This Is Forex...

#1,234
Aug 5, 2008 7:00pm Aug 5, 2008 7:00pm

NuckingFuts
| Joined May 2008 | Status: Nudist | 1,098 Posts

Quoting Mets

Disliked

Just because the dollar goes up doesn't mean the EJ will fall, there's no correlation. There is coronation when the USD and certain other currencies move, but you can't assume a connection between the USD and the EJ alone.

Ignored

If any of you don't understand what I am about to say, you should not be trading any cross pairs. I also mentioned this before.

There is a direct correlation in most cross pairs with their USD counterpart multiplied together or divided by each other. Not one other pair alone but the two counterpart USD pairs.

In the EUR/JPY, it is the EUR/USD and the USD/JPY.

EUR/JPY = EUR/USD x USD/JPY

Pull out your calculator and enter the current price of the EUR/USD. Multiply that number by the current price of the USD/JPY and then compare the answer to the EUR/JPY. Notice a striking similarity?

Let's take the price as of now. The EU is trading at 1.5462. The UJ is trading at 108.31.

1.5462 x 108.31 = 167.47

This works with most yen cross pairs and many others.

AUD/JPY = AUD/USD x USD/JPY
GBP/JPY = GBP/USD x USD/JPY
GBP/CHF = GBP/USD x USD/CHF
etc...
etc...

Other crosses need to be divided instead of multiplied, i.e.

EURGBP = EURUSD / GBPUSD
EURCHF = EURUSD / USDCHF

There are some that don't work this way (i.e. CAD/JPY). I don't trade these, so I have not bothered to find their exact formula.

So at times there are 100% certainties here. When the EU is going down and the UJ is going down, it is 100% guaranteed that the EUR/JPY is going down!!!

This is a great quote:

"All FX transactions flow through the USD in order to promote liquidity. If you want to buy AUD/JPY you must sell JPY vs. USD and then sell USD vs. AUD. AUDJPY is nothing more than a mathematical calculation of the the two currencies vs. USD from the resulting transaction."

From: http://www.forexfactory.com/news.php?do=news&id=99120

#1,235
Aug 5, 2008 7:32pm Aug 5, 2008 7:32pm

Mets
| Joined May 2008 | Status: Trader | 60 Posts

Quoting NuckingFuts

Disliked

There is a direct correlation in most cross pairs with their USD counterpart multiplied together or divided by each other. Not one other pair alone but the two counterpart USD pairs.

Ignored

Absolutely, and that's why you don't look at just one. There's more to this, but I'll let the interested readers find it out themselves

Quoting rainingpips

Disliked

I don't think anyone was implying they merely traded by the movements of the other pairs...it's more of a confirmation, strength indicator for me during major news announcements, but I don't speak for Peaches. Technicals are implying continued downward trend for EUR/JPY irrespective of where EUR/USD is going.

Ignored

As you can see from the above, you can't just go by the EU. The technicals were pointing up back at the 9am bar, which is why you saw it continue upward. Even if it rises up 100 pips, it will still be in the downward channel, and hence still in a downtrend. It just depends on what you are trying to play. Also, we might be using very different types of analysis though, since you are a scalper and I am a quant.

#1,236
Aug 5, 2008 7:34pm Aug 5, 2008 7:34pm