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!