Possible EUR/JPY And NZD/JPY Correlation Trade
Vantage | Oct 13, 2015 01:07AM ET
Today’s NZD/JPY chart follow’s on from yesterday’s look at EUR/JPY, with both pairs poised precariously at resistance.
Using the Correlation Matrix in the Vantage FX MT4 SmartTrader Tools Package to take a look at how the pairs move in relation to one another, you can see that the two bring up a high correlation reading.
Correlation:
Both charts side by side look fairly similar, with price sitting at a confluence of trend line resistance as well as a horizontal support/resistance zone.
NZD/JPY Daily:
Zooming into the NZD/JPY chart on its own, you can see that price is still sitting right on resistance while EUR/JPY got the beginnings of a potential rejection yesterday.
If you took yesterday’s EUR/JPY short and have some floating profit, the opportunity to now take a correlated NZD/JPY short could be there.
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