Hi,
All along Ive heard people say that those two pairs have a strong reverse correlation, but when I look at Correlation Charts or online Correlation tools that I find the results usually suggest that there is little correlation between the two. Whats the case with these two pairs guys? Thanks!
I don’t see a strong correlation between the two either. However, they will move inversely if the cause of the move is because of USD. If USD is strengthening, GPP/USD will move down assuming GBP is staying constant.
If USD is strengthening, USD/JPY will move up assuming JPY is staying consant.
Does this help?
Paco
I like to trade with currencies correlated i prefer
EURUSD – USDCAD
GBPUSD – EURGBP
USDJPY – EURJPY
and what i achieved
Lazaras has risen…9 years after his death, probably smells a bit
I am still confused how to choose pair that has corelation and how to trade with, gbpusd and usdjpy, mighht that has corelation is on usd currency, if these currency move strong hece another pair that has element of usd will move strong too
Thank you for giving the good information about trading in these pairs and i will see how much trading i am able to do in them now 
It has been observed that GBPUSD and USDJPY are moving in same direction after US election . Is int it ? both are my fav pairs .
I think USD is picking up steam ahead of the CPI data. That’s why GBP/USD is dipping while USD/JPY is on the rise. I’m keeping a close eye on the market for now.
Looks like the “strong reverse correlation” is just a myth—sometimes they’re like frenemies, acting in opposite directions, and other times they just do their own thing!
Totally agree! It’s definitely an interesting time to watch the market, everything feels like it’s hanging in the balance. How do you think the CPI data will impact these pairs?
I think the CPI data could push USD even further, especially if the numbers come in higher than expected, which could keep pairs like GBP/USD under pressure. Keeping an eye on it.
