Brokers With the Highest Volume for USD/JPY
Trading volume is one way to evaluate stocks when deciding whether to buy or sell. Paying attention to the trading volume also plays a big role for those who want to trade in high volume. Nowadays, more and more traders are interested in trading in high volume. The reason is that it minimizes volatility, reduces liquidity risk, and usually has a lower spread.
Trading in high volume can be done in some currency pairs such as USD/JPY. But which broker offers the highest volume to trade this pair with? This is a list of brokers with the highest volume for USD/JPY that you can use as a reference.
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What is the correlation between gold and Yen?
Gold has a positive correlation with Yen. Let's look at the chart below, which compares Yen Futures to Gold Futures from June to December 2020. The peaks and troughs of gold correlate to the peaks and troughs of Yen.
The graph also demonstrates that the connection is not perfect. In other words, the percentage-to-percentage change or point-to-pip basis between gold and Yen is not precise. Nonetheless, there is a level of linkage that cannot be disregarded even though the strength of the association can also be shown to alter over time.
Continue Reading at The Curious Case of Gold and Yen's Correlation
How to trade with gold and Yen's correlation?
It actually depends on how traders apply their trading strategy to both instruments. Say you use Moving Averages and divergence strategy, here's what it would look like:
We can see how a hidden bullish divergence first appeared on Gold, which was later reflected in USD/JPY's hidden bearish divergence. This signifies that Gold's rally is complemented by Yen's rally, thus concluding to USD/JPY heading lower.
We can also compare the candlestick patterns on both charts. Although quite subjective, patterns such as engulfing or inside bars are considered reliable across different assets analyses.
Continue Reading at The Curious Case of Gold and Yen's Correlation
Why is gold correlated to Yen?
In actuality, there is no definite answer despite the fact that Gold and yen are both considered safe havens.
Long-term research by Goldmoney in 2017 repeatedly demonstrated that Gold is primarily influenced by three factors: real-interest rate expectations, longer-term energy costs, and central bank policies. JPY will only move following the real interest rate differential if no other forces are in action, and Gold will do the same. As long as the other factors influencing Gold prices remain consistent, Gold trades perfectly in line with actual interest-rate expectations.
Continue Reading at The Curious Case of Gold and Yen's Correlation
How does oil price affect the Japanese Yen?
Japan is an energy-poor country, and largely depended on its nuclear generator and imported oil and gas. Therefore, high oil prices could be expected to hit hard on its economy. In line with this, CAD/JPY often make significant moves around the same time as oil prices. When oil prices fell, we could expect CAD/JPY to go down and vice versa.
Continue Reading at How World Oil Prices Affect Forex, Before And After US Shale Fracking
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