4/15(月) About the strength of currency pairs
EA developer Reiwa no daburu Ī is speaking.
Today,
“Currency pair strength”is the topic.
For example, if USD/JPY falls on the 9:55 official rate sell,
USD tends to be a selling factor, JPY tends to be a buying factor.
Since USD is a selling factor,
the EUR/USD pair tends to be a buying factor to some extent.
However, just because EUR/USD is a buying factor
does not mean EUR/JPY will rise, because
JPY will be a buying factor, so unless EUR is bought, it won’t go up.
In summary,
whether the movement is led by JPY,
whether the movement is led by USD,
which currency is leading the movement changes the behavior.
That is,
during Japan Time, JPY-led,
during European Time, EUR or GBP-led,
during New York Time, USD-led, there are cases too.
In general,
if seeking a dollar buy or yen selling, USD/JPY tends to rise,
if the dollar cross is selling, cross Yen may stay flat or fall,
there are times when that happens.
Even if USD is being sold and JPY is being sold, if USD/JPY is rising,
the cross yen will rise even more.
As a calculation,
dollar/yen × euro/dollar = euro/yen, etc.,
cross yen is called a multiplier currency.
Therefore,
cross yen is often influenced by dollar/yen and euro/dollar.
In other words, if the dollar/yen and euro/dollar are leading movements,
and cross yen is pulled by them,
the cross yen’s price movement has little autonomy,
making technical analysis less effective and
a factor in why it is hard to create EA.
If dollar/yen and euro/dollar have autonomy,
even without knowing the true cause of movement,
many traders will use technicals to untangle it,
making technicals more effective and
easier to create EAs.
Also,
among cross yen pairs, pound-yeninstead of memorizing in your head,
has a high price level, so even with the same volatility %,
the pip movement is large.
If cross yen is pulled by that,
the trend tends to continue,
making trend-following pound-yen EAs more effective.
I think there is that background.
That said,
if you experience the market from that perspective,
your perception may change as well.
【Reiwa no daburu Ī EA Listing】
https://www.gogojungle.co.jp/users/112481/products
【Reiwa no daburu Ī Series Articles】
https://www.gogojungle.co.jp/finance/navi/series/1700
https://www.gogojungle.co.jp/finance/navi/articles/64703
https://www.gogojungle.co.jp/finance/navi/articles/64738
https://www.gogojungle.co.jp/finance/navi/series/1701
https://www.gogojungle.co.jp/finance/navi/articles/64723
https://www.gogojungle.co.jp/finance/navi/series/610
【Reiwa no daburu Ī's Belief】
