Inside the Currency Market: USD/JPY Vs DXY, USD/CHF and Gold
|As shown in the last post was the profound fallacy to the USD/JPY and USD Yield relationship for any and all USD/JPY trade consideration to entry and target. The same scenario exists for example to USD/JPY and Europe or UK yields which move in the opposite direction as USD yields. USD/JPY trade consideration is non existent to entry and target.
Yields are now and have been for quite some time a dead range trade instrument and killed off by no movements to interest rates, particularly overnight rates.
Such an abysmal failure to USD/JPY trade consideration to entry and target and Yields is seen before every traders eyes directly from the chart and easily factored and assessed. But here we have the leading FX Retail leaders to inform from the delusion of the chart in regards to USD/JPY and yields. USD/JPY goes green then yields go green and vice versa so it must be true. Yet nobody checked.
Maybe the concept was designed to misinform but this assumes market knowledge and this is not the case in today’s world of trading as +90% of traders are addicted to charts and indicators for all trade consideration.
My personal quest is to find traders to teach and learn market and fX concepts not already known to advance my own skills and knowledge. Found was another ephemeral concept to FX knowledge as charts and indicators rule the day.
USD/JPY Last Week
Monday = 109.76 to 110.39 or 63 pips
Tuesday = 110.19 to 110.65 or 46 pips
Wednesday 110.68 to 109.93 or 75 pips.
Thursday 109.71 to 110.09 or 38 pips
Friday 109.71 to 110.33 or 62 pips.
DXY
Monday = 92.11 to 92.41 or 30 pips
Tuesday 92.15 to 92.82 or 67 pips
Wednesday 92.83 to 92.35 or 48 pips
Thursday 92.26 to 92.68 or 42 pips
Friday 92.75 to 92.53 or 21 pips
USD/CHF
Monday 37 pips
Tuesday 55 pips
Wednesday 58 pips
Thursday 74 pips
Friday 37 pips.
USD/JPY Monday at 63 pips beat 37 pips USD/CHF and DXY 30 pips by almost 2 times.
Tuesday DXY 67 pips and USD/CHF 55 pips beat USD/JPY at 46 pips.
Wednesday USD/JPY 75 pips beat USD/CHF 58 and DXY 48
Thursday DXY 42 pips and USD/CHF 74 beat USD/JPY 38 pips.
Friday USD/JPY 62 pips beat DXY 21 and USD/CHF 37 pips.
USD/JPY outperformed USD/CHF and DXY Monday, Wednesday and Friday while DXY and USD/CHF outperformed USD/JPY Tuesday and Thursday.
USD/CHF outperformed DXY Monday by 7 pips, Wednesday by 10 pips, Thursday by 32 pips and Friday by 16 pips.
DXY outperformed USD/CHF Tuesday by 12 pips as the only time last week and outperformed USD/JPY Tuesday by 21 pips and Thursday by 4 pips.
USD/JPY moved overall total of 284 pips, DXY 208 pips and USD/CHF 261 pips.
The underperformer is DXY and overachiever USD/JPY.
Instead of yields and lead the trading public astray and to trade a tough concept as 2 financial instruments from 2 separate market instruments , the answer to exchange rates to trade correct entries and targets is by prediction from other exchange rates.
USD/JPY, USD/CHF and DXY is the story of an old FX concept and the great rotation. USD/JPY takes turns in relation to USD/CHF and DXY to out or underperform. An outperformance to DXY and USD/CHF equates to an underperformance to USD/JPY while an outperformance to USD/JPY leads to an underperformance to USD/CHF and DXY.
USD/CAD as the overachiever easily outperforms USD/JPY, USD/CHF and DXY by nearly 1/2. If DXY, USD/CHF or USD/JPY trades 50 pips for example, USD/CAD trades 100.
USD/CAD as the overachiever I suspect is more closely aligned to EM currencies such as USD/PLN rather than DXY, USD/CHF and USD/JPY. EM currencies as USD/Other Currency this week are at massive overbought along with USD/CAD. Nothing special exists to USD/CHF and USD/JPY this week yet rarely if ever is a good weekly trade seen on Monday. Those trades usually come Tuesday or Wednesday.
Gold
Monday 18 pips
Tuesday 19 pips
Wednesday 25 pips
Thursday 14 pips
Friday 22 pips
Weekly range total 43 pips as Wednesday and Friday were best days as was the case for DXY and USD/CHF.
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