Everyone already knows about GBP becoming a risky currency right now. What became not that obvious is how EURUSD follows USDJPY moves:
Without any extra sketching we can see EUR depreciation against USD comes with JPY strenghtening. If we look further to the past the correlation started from right about Brexit. Beforehand, it was totaly different - USD appreciation against JPY meant same against EUR. How about trading long USDJPY and short EURUSD same time? Losing on one gives at least partial profit on other, plus overnights are positive and unlikely to change in the near future. Additionally if USDJPY goes south too much BoJ is likely to intervene or even coordinated intervention is possible! The correlation weakens by time passing, yet EURUSD southern direction is likely to prevail for some time anyway.
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