Yen crosspairs at crossroads

摘要

Forex traders often focus on the immediate opportunities of intraday moves. Day trading, of course, provides the rewards of a daily dose of adrenalin along with the hopes of gaining a quick 20 pips. Sometimes, however, a longer duration perspective reveals opportunities that go beyond the intraday noise. Crosspairs are especially good candidates for detecting larger moves. They essentially pit expectations about one country's economic prospects against another country's economic prospects. Their respective currencies become vehicles that take on the emotions of those expectations when they strengthen or weaken against each other. Another benefit of trading crosspairs is the absence of the U.S. dollar as an immediate factor in the price action. U.S. dollar fundamentals have the capability of sucking all the oxygen out of the room and rendering legitimate fundamental factors of other currencies irrelevant. The absence of the dollar removes a great deal of volatility in the price patterns.