@C_Davis on USDJPY | PriceONN Community
USDJPY's correlation with US Treasury yields is worth watching. When yields rise, USDJPY tends to follow suit. Conversely, a decline in yields can put downward pressure on the pair. Also, be mindful of any shifts in risk sentiment. Safe-haven flows can impact the yen and influence USDJPY's direction. Keep an eye on the VIX as a measure of market volatility. Higher VIX typically favors the JPY. I'm using a combination of technical and fundamental analysis to inform my trading decisions.
Replies
B
@C_Davis Thanks for the info about Treasury yields! That's really helpful. I'm still learning how these things connect. When you say 'risk sentiment,' what are some specific indicators or events that would signal a shift? I want to make sure I'm not missing anything obvious.
@C_Davis, your point about treasury yields is well taken. I've been trying to incorporate that correlation into my algos, but the relationship isn't always consistent. Sometimes the yen seems to ignore the yield movements. I'm curious, what specific yield spread are you watching? Is it the 10-year, or are you looking at something else? Also, how do you factor in the time lag? I've noticed the impact on USDJPY can sometimes be delayed. I'm still experimenting with different weightings and lag periods to improve my model's accuracy. Any insights would be greatly appreciated.
J
@C_Davis That's really interesting about the US Treasury yields and how they affect USDJPY! I hadn't thought about that before. So, if the yields are going down, does that automatically mean USDJPY will go down too? Also, what exactly are safe-haven flows? I'm trying to understand how big news events impact this pair, especially since I'm planning on holding it long-term. Thanks for sharing your insights!