EUR/USD Vs USD/JPY and the FX Cross Pair DivideYesterday’s EUR/USD at its critical predicament contained two choices: either trade 50 pips higher to 1.2114 and 1.2117 from 1.2065 then short again or break its vital high /low point at 1.2040 and trade to 1.2026. EUR/USD decided to break support at 1.2040 and trade 14 pips lower to 1.2026. EUR/USD for the past 20 hours continues to trade around critical 1.2040.
Overall currency markets are in the great deadlock between natural opposites EUR/USD and USD/JPY. Current USD/JPY at 105.74 trades 84 pips above its vital high/ low point at 104.89. This line is rising. EUR/USD trades around its current high /low point at 1.2039. This line moved 1 pip lower since yesterday’s ECB at 10 A.M. EST. EUR/USD and USD/JPY achieved its crowning achievement by rhe great divide to currency pairs.
USD/CAD at 1.2600’s and GBP/USD at 1.3800’s or 1200 pips informs this distance is far to wide. GBP/USD trade to 1.4000’s while USD/CAD was located at 1.2500’s or 1500 pips assisted to diminish the distance yet 1200 pips informs a big move is ahead. Normal distance is 3 to 500 pips.
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For the past four weeks as written, JPY cross pairs were and continue to trade in severely overbought territory. The degree of overbought is recognized as 500 pips from AUD/USD 0.7700’s and AUD/JPY at 82.00’s and 500 pips from NZD/USD 0.7100’s to NZD/JPY 76.00’s. Normal is in the vicinity of 100 to 200 pips maximum because NZD/USD and NZD/JPY are the exact same currency pairs much the same as AUD/USD and AUD/JPY.
The divide grows wider at 800 pips from GBP/USD 1.3600’s to GBP/JPY at 147.00’s and 700 pips from EUR/USD 1.2000’s to 127.00’s for EUR/JPY and normal is 100 to 200 because GBP/USD and GBP/JPY are the exact same currency pairs much the same as EUR/USD and EUR/JPY.
USD pairs EUR/NZD at 1.6700’s trades 2500 pips to GBP/NZD 1.9200’s. Normal trades around 1600 to 1800 pips and 700 pips off kilter.
The EUR/USD and USD/JPY relationship is distinguished by the massive and extreme divide between and among currency pair prices, particularly USD and overall cross pairs as the primary driver to current prices.
Today’s trade is presented as a two trade option by matching significant day trade support, resistance and levels. Short the highs and long the lows.
USD/JPY highs Vs EUR/USD Lows.
USD/JPY up target 106.43 vs EUR/USD 1.1985 lows.
USD/JPY 106.36 Vs EUR/USD 1.1998.
USD/JPY 106.29 V EUR/USD 1.2011
USD/JPY 106.16 Vs EUR/USD 1.2015
USD/JPY 106.09 Vs EUR/USD 1.2023
USD/JPY 106.03 Vs EUR/USD 1.2028.
USD/JPY 105.96 Vs EUR/USD 1.2034.
EUR/USD Highs Vs USD/JPY lows
EUR/USD 1.2107 Vs USD/JPY 105.37
EUR/USD 1.2099 Vs USD/JPY 105.44
EUR/USD 1.2091 Vs USD/JPY 105.51
EUR/USD 1.2076 Vs USD/JPY 105.58
EUR/USD 1.2068 Vs USD/JPY 105.63
EUR/USD 1.2061 Vs USD/JPY 105.71
EUR/USD 1.2053 Vs USD/JPY 105.79
EUR/USD 1.2049 Vs USD/JPY 105.87.
EUR/USD is a complete opposite pair to USD/JPY however prices never match pip for pip as the relationship runs 7.62 pips for EUR/USD Vs 6.62 for USD/JPY.As a side note all market prices especially Stock Indices are factored the exact same as a currency price. The difference is in the name and number yet its all the same.
Not many pips trade anymore as the old days of trading therefore pips and profits are maximized by multiple longs and shorts per currency pair. All information is known in advance of the trade therefore no stops, charts and whatever is needed nor applied.