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EUR/USD Mirroring USD/JPY Again Due to Dollar Weakness

Yesterday it was the Euro that dropped in response to the ECB enhancement and today the Dollar has dropped more than 50 pips after worse than expected Non-Farm Employment data. This shows especially when compared to the Yen in the Dukascopy Movers and Shakers table:
It is interesting to note that yesterday the EUR/JPY mirrored the EUR/USD, when it dropped and today it has mirrored the USD/JPY, as it has done for the last two months. See the two charts below:
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Shalomavahatikvah avatar
Shalomavahatikvah 2014年09月07日

Big correlation here:)

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EURO Plunges after ECB Announcement

The euro plunged over 200 pips after the ECB announcement turned out to be even more dovish than expected. It lost ground against all the other majors, as can be seen from the Dukascopy forex Movers and Shakers table below.
The euro was sold off so strongly that EUR/JPY discontinued its two-month long correlation with USD/JPY and instead mirrored EUR/USD, as can be seen from the two charts below.
For the EUR/USD will this be a case of “sell the rumor buy the news” or will the bear trend continu
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EUR/USD Has Bounced but Will the Bear Trend Continue?

EUR/USD Has Bounced but Will the Bear Trend Continue? As predicted, EUR/USD has bounced and reached R2 before retreating back towards R1. All eyes are on the ECB announcements and US employment data tomorrow to see if the euro will resume its bearish direction.
The EUR/JPY has broken the neckline of an inverse head and shoulders pattern on the four hour chart. It remains to be seen whether this signals a break to the upside or whether the bearish trend since March will continue.
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Will the Euro Accelerate Lower or Bounce this Week?

Will the Euro Accelerate Lower or Bounce this Week?
The euro has declined for seven consecutive weeks. This is the longest consecutive losing streak since 1999. Will it accelerate lower or bounce?
Market Conditions
We are at the point of a seasonal shift at the end of the North American summer doldrums characterised by low volume and low volatility. Monday is the Labour Day holiday in the US and Canada, which will drain liquidity from the market. On Tuesday, as investors return, volume and vo…
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AnnaVer1 avatar
AnnaVer1 2014年09月01日

Very interesting!

Shalomavahatikvah avatar
Shalomavahatikvah 2014年09月01日

Insightful. I cant interpolate this after dinner and 3 glasses of Diemersfontein Pinogate, good though.

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Shalomavahatikvah 2014年09月01日

I meant Pinotage

nsteve avatar
nsteve 2014年09月01日

Enjoy the Pinotage! Forex interpretation come later

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Shalomavahatikvah 2014年09月01日

Thanks.!

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