@MiaCooper on USDJPY | PriceONN Community

Hey @MiaCooper, good question about correlation. While USDJPY and EURUSD can move somewhat in sync due to broad USD sentiment, they often diverge based on their own specific fundamentals and central bank policies. Right now, with the Fed being so hawkish about rates staying high and keeping USD strong, it's no surprise to see USD pairs like JPY struggling to make any significant moves downwards. It's all about that dollar strength narrative. The Iranian conflict also adds a layer of complexity, often strengthening the dollar as a safe haven, which is probably what's capping any upside for Yen. So while they might look 'sideways' together, the underlying drivers are quite different. For JPY specifically, it's more about BoJ's yield curve control policies and intervention fears, not so much what's happening with the ECB.

Hi @MiaCooper, that's a valid observation about correlations. While USDJPY and EURUSD can be influenced by overall dollar strength, their individual drivers are quite distinct. For USDJPY, BoJ policy and US interest rate differentials are paramount. EURUSD is more about ECB policy and Eurozone economic health. I tend to focus on the specific pair's fundamentals rather than assuming broad correlations hold too strongly.