[rhodytrader]

Originally Posted by topchess

Let us take one pair, say EURJPY.

EURJPY moves down with EURUSD, or with USDJPY..and vice versa
I ask you a straightforward question.

Assume EURUSD drops X pips, and USDJPY is flat or moved up way lower than X pips, where will EURJPY be heading?

It will be heading down. that's what I mean.

In the case where EUR/USD falls and USD/JPY stays flat (or only rises a little), then that just indicates EUR weakness. Yes, you would expect EUR/JPY to fall because the EUR is weaker and JPY is holding steady.

You write, though, as if EUR/JPY is just a mathematical construct based on EUR/USD and USD/JPY and not actual exchange rate with which actual cross-border transactions take place. In fact, sometimes EUR/JPY is the driver of changes in EUR/USD and/or USD/JPY, rather than it being the other way around.

Originally Posted by topchess

I can't be convinced that EURJPY will still go up if EURUSD moved down, unless USDJPY is going up (way more than EURUSD drops)

I even seen case when both EURUSD and USDJPY (nowadays) drop together. that's like a double drop for EURJPY.

You just hit the nail exactly on the head in terms of the point that I'm making. EUR/JPY is the rate of exchange between the EUR and the JPY. EUR/JPY can and does sometimes move higher when EUR/USD drops because while the EUR may be weakening against the USD, it is rising in relative value against the JPY. Similarly, EUR/JPY can sometimes fall even when EUR/USD is moving higher because at the same time the JPY is also rising in value.

What you seem to be doing is performing double analysis - one of EUR/USD and one of USD/JPY. That is totally fine. I do that myself sometimes. My point is that EUR/JPY is a rate unto itself and must be treated as such.