One of the most popular pairs among the Forex Championship traders is the euro versus the Japanese yen. It is not only popular it even has an own nickname among traders… If you come across the term “Euppy” or in some cases “Yuppy” … – traders talk about EUR/JPY. The pair is one of the most traded cross currency pairs. “Euppy” is a mix of the words that compose the name for the pair “EUR/JPY”. The first two letters of EUR and the last two of JPY and a “p” in the middle. The currency pair does not only have a fancy nickname – it also often trades in a very “fancy” way. Traders love the Euppy because it has a very high volatility and in this way offers plenty of trading opportunities. The average daily range of EUR/JPY is usually a lot higher than the range of for example EUR/USD or USD/JPY. A larger range of course means bigger potential profits. It is also a very good indicator for risk taking (risk proxy) in the market. During times of optimism and a rising stock market EUR/JPY is performing very well. When pessimism takes the upper hand in the market (“risk off move”) the euro is retreating against the Japanese yen. If you compare a historical chart of indices such as the S&P 500 index from the United States or the German DAX 30 index with the chart of EUR/JPY the correlation gets visible. Every major advance and every decline in the indices is mirrored in the EUR/JPY chart – the correlation is very strong. A bullish or a bearish divergence between the Euppy and equity indices can be an early warning signal. The January high in the Dax for example was not confirmed by EUR/JPY – a negative divergence and an early warning signal for investors exposed to the equity market (see chart). Join the Forex Competition today and trade the Euppy!
To me the EURJPY is one of the best pairs that i like trading particular because it is very volatile and responsive to high impact news that is one of the reasons why i love trading the EURJPY and to me that is one of the reasons why i don't joke with this currency pair.
I am intrigued by this bit of info that you just gave us. I use to play use a correlation paid strategy awhile ago. Would you be so kind to tell me where I can find a chart where I can plot these pairs together? A light bulb went on in my head.
One of the reasons why i love this pair so much is due to the fact that it is a very trending pair and to me it often seems to have a lot of stability on like the eurusd pair which is rather more volatile to me so that is why i love the eurjpy so much and i am sure a number of people will agree with me.
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