Euro Trading and Yen Currency Cross Pair
The most popular currency pairs to trade on the forex market after major currencies or currency pairs involving the US Dollar are Euro Cross Pair and Yen Cross Pair . And also like the US Dollar Euro and Yen are also the reserve currencies of many countries.
The most popular pairs of Euro Cross Pair are EUR / JPY, EUR / CHF, and EUR / GBP. And keep in mind that economic news affecting the Euro or Switzerland is more influential in the euro cross pair compared to EUR / USD or USD / CHF.
Likewise, news from the United Kingdom (UK) has more influence on EUR / GBP than GBP / USD.
But strangely, economic news from the United States (US) also took a role in the movement of euro cross pair prices. News from the US will move strongly the prices of GBP / USD and USD / CHF. And this does not only affect the price of GBP and CHF against the USD but this can also affect the price of GBP and CHF against EUR.
When the USD price moves in a higher trend, the EUR / GBP and EUR / CHF prices will move in a higher trend as well. This also applies the opposite when the USD price moves in a lower trend.
And here’s a brief explanation so that no one gets confused, so let’s say economic news from the US shows that the economy is expected to be higher than expected so the USD strengthens. So that the price of GBP / USD will fall which will then push the GBP value down. And at the same time the price of USD / CHF will rise which will then push the CHF value down.
The fall in the value of GBP will cause EUR / GBP prices to rise because many forex traders are selling GBP currency.
The fall in the CHF value will cause EUR / CHF prices to rise because many forex traders are selling CHF currencies.
Yen Cross Pair Trading
After the EUR currency, the JPY currency is a popular currency traded in the forex market including major currencies.
According to the Trienial Central Bank a survey of the EUR / JPY Bank of International Settlements has the highest trading volume compared to other JPY cross pairs.
And GBP / JPY, AUD / JPY and NZD / JPY are the most attractive currency pairs when we talk about carry traders this is because the pair offers a high difference in interest rates.
It is recommended when trading JPY Cross Pair to always pay attention to price movements of the USD / JPY currency pair. Like when USD / JPY is able to break the resistance level, it shows that a lot of traders are selling JPY. And this also shows that many traders are selling JPY to other currencies. Therefore, it is likely that the price of EUR / JPY, GBP / JPY and JPY other cross pairs will move up too.
Trading JPY Cross Pair (CAD / JPY)
Currency cross pair has become very popular among forex traders today and has become very high in relation to the price of world Crude Oil.
Canada is the second largest oil producer in the world and has made a lot of money with rising oil prices.
On the other hand, Japan is a very large oil importer with almost 99% of its oil coming from imports and not from its oil reserves.
Now there is a country that has abundant oil production (CAD, Kanda) and a country that needs oil for the survival of the country (JPY, Japan) then then almost 87% of both factors will affect the world oil price and CAD / JPY currency cross pair.