Quote:
Originally Posted by topchess
Let me ask you, what makes GBPJPY or EURJPY trend upside?
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Very simple. It's the relative value of the JPY vs. the GBP or the EUR. That's what the cross represents, after all. They are not related to the USD.
Can you see EUR/JPY dropping when USD/JPY drops? Absolutely! It happens when some JPY positive event or news takes place, like traders thinking the BOJ is going to hike rates. That is a JPY specific influence. It has nothing at all to do with the USD. If you see the JPY pairs moving in the same direction, it's because of the JPY. Just like if you see the USD rising or falling against all the other major currencies, it has to do with the USD.
Quote:
Originally Posted by topchess
So, there is a big, very big correlation between USD trends in majors and Crosses. That's for sure.
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Show us the numbers. Run a regression analysis and see what you come up with. You will most certainly find that there is not a "very big correlation".