In the fast few weeks, the forex market has seen a correlation between the US dollar and the Japanese Yen. Whenever the dollar becomes stronger, the Yen beats everybody else, including the dollar. And vice versa. Whenever the dollar weakens, like today, the Yen weakens even more. Today, despite good data from the US, the dollar lost ground to the British Pound, the Euro and the Swiss Franc. But, it gained against the Japanese Yen. Last week, the dollar made nice gains against all those European currencies, but weakened against the Yen. USD/JPY reached a 13 year low of 87.10. This correlation happened in the past, a few months ago and is clearly seen recently. This makes the Yen crosses very promising. Today, the GBP/JPY made the sharpest move amongst all majors and crosses, gaining 2.66%, or 320 pips (at the time of writing). The second biggest gain was made by CHF/JPY (2.42%) and the third place was taken by EUR/JPY (2.24%). This shows how strong the correlation was today. Similar behavior occurred in the other direction last week, where the most lucrative positions were shorts on these crosses, all in favor of the Yen. So, if this trend continues, Yen crosses are more favorable than the classic dollar currency pairs at this time. I’ve previously written about another correlation – between the dollar and the pound, but this phenomenon has ceased. The USD JPY correlation seems stronger. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Opinions share Read Next Forex Daily Analysis – January 27th 2009 Yohay Elam 14 years In the fast few weeks, the forex market has seen a correlation between the US dollar and the Japanese Yen. Whenever the dollar becomes stronger, the Yen beats everybody else, including the dollar. And vice versa. Whenever the dollar weakens, like today, the Yen weakens even more. Today, despite good data from the US, the dollar lost ground to the British Pound, the Euro and the Swiss Franc. But, it gained against the Japanese Yen. Last week, the dollar made nice gains against all those European currencies, but weakened against the Yen. USD/JPY reached a 13 year low of 87.10.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.