Inside the currency market: EUR/USD vs USD/JPY

Brian Twomey Brian's Investment

Both EUR/USD and USD/JPY correlate at negative 93%. EUR/USD and USD/JPY prices separate by a range of 84 pips. USD/JPY is deeply oversold from 114.37 and a 3 pips drop in 2 trade day. USD/JPY traded 56total pips or 44 pips lower and 12 pips higher.

EUR/USD traded 1.1388 to 1.1288 or 100 pips or 70 pips higher and 30 pips lower. EUR/USD achieved target as written Sunday at 1.1388.

USD/JPY 100 day average is located at 114.53 and trades between the 50 and 100 day from 114.53 to 115.02. While EUR/USD's price is to low to record even the 5 day average. EUR/USD highest price is found at the 100 day average at 1.1321 and 50 day at 1.1337.

USD/JPY at current 114.72 is in a dangerous position. Longs at current price could find losses if 114.37 breaks lower. Longs however may find terrifc profits from 114.72 to target at 115.57.

USD/JPY trades in an 84 pips range without a significant level in between. Remaining levels are minor and fairly insigificant.

EUR/USD is deeply oversold and DXY at 96.25 is far to high in relation to 97.00 and 98.00 multi year tops.

USD/JPY longs for today are located at 114.45, 114.50 and 114.57 and targets 115.03.

For USD/JPY, 4 numbers and only 4 numbers drive prices until 9:00 am or 3:00 pm Europe: 114.16, 114.45, 115.03 and 115.32. Today, 114.37 may or may not hold.

EUR/USD 4 numbers drive EUR/USD: 1.1249, 1.1277, 1.1334 and 1.1363.

EUR/USD 1.1249 = USD/JPY 115.32. EUR/USD 1.1277 = USD/JPY 115.03. EUR/USD 1.1334 = USD/JPY 114.45. EUR/USD 1.1363 = USD/JPY 1.1416.

EUR/USD shorts are located at 1.1334 and 1.1363 to target 1.1313 then 1.1277. EUR/USD longs are located at 1.1249 and 1.1277 to target 1.1334.

Overall, 114.37 is expected to hold this week which means we could target USD/JPY as a long only strategy to achieve 115.57 then reverse to shorts rather than allow 80 pips to fly by without profits.

Why the EUR/USD match to USD/JPY is due to each pair as perfect opposites. The difference is USD/JPY's decimal point was moved.

As an aside issue. Time springs forward March 13 by 1 hour. This means day trades change for the next 6 months to 2:30 am to 10:00 am and nightly trades from 9:30 pm to 2:30 am. Day trades run as usual 12 1/2 hours from a total of 24.

Author

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

AUD/USD holds steady near 0.7200 amid escalating US-Iran tensions

AUD/USD consolidates just below its highest level since mid-May, touched on Friday, and hovers around 0.7200 at the start of a new week amid mixed cues. Hawkish RBA expectations continue to act as a tailwind for the Aussie. Meanwhile, the upbeat US NFP report lifted Fed rate hike bets, which, along with escalating US-Iran tensions, underpins the safe-haven US Dollar and caps the currency pair.

USD/JPY hovers around 156.00 as more hawkish BoJ bets cap gains

USD/JPY holds steady above 156.00 on Monday as the US Dollar draws support from escalating US-Iran tensions and rising Fed rate-hike bets, bolstered by Friday's upbeat NFP report. Moreover, concerns over Japan’s fiscal outlook keep the Japanese Yen on the back foot and support the currency pair, though more hawkish BoJ expectations and a suspected intervention cap the upside.

$4,400: Gold struggles at that level, but bulls refuse to give up yet

Gold has kicked off a new week on a bearish footing, resuming the previous downside while battling the $4,400 level amid a United States holiday-led light trading. Gold is facing headwinds from the latest uptick in Oil prices, which continue to stoke inflationary concerns and flag the need for policy tightening globally.

Cardano: Strengthening momentum points to cautious upside extension

Cardano trades around $0.222 after rallying over 15% last week. Mixed derivatives data and mildly bullish on-chain metrics point to cautious market sentiment. Meanwhile, strengthening momentum indicators suggest ADA could see further gains if the recovery continues. Cardano derivatives metrics show a mixed sentiment. CoinGlass’ long-to-short ratio for ADA reads 0.94 on Monday.

US Dollar Weekly Forecast: Why one inflation report could matter more than a blockbuster NFP?

Joy can’t last forever, can it? The US Dollar rapidly faded its prior gains and resumed its marked downside this week, with the US Dollar Index coming close to its psychological 100.00 barrier, only to see that dream turn to ashes as market chatter reignited speculation that the Bank of Japan might hike its policy rate at its next meeting.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.