This correlation trade can be taken as a swing trade to capture a bulk of the dislocation or it can be taken as a scalp trade. Either way proper money management must be used as USDJPY is about 15% more volatile than EURJPY.
As you can see the spread between these two is approximately 1,300 Pips, the widest since April of 2015.
The trade would be Short USDJPY & Long EURJPY. No stop loss is placed but a mental stop is recommended.
Remember, you want to be on same side as the Institutions and NOT the retain crowd. Change your thinking from a retail trader to an Institutional trader and your success will change immediately.
As you can see the spread between these two is approximately 1,300 Pips, the widest since April of 2015.
The trade would be Short USDJPY & Long EURJPY. No stop loss is placed but a mental stop is recommended.
Remember, you want to be on same side as the Institutions and NOT the retain crowd. Change your thinking from a retail trader to an Institutional trader and your success will change immediately.
Comment:
We suggest waiting until after tomorrow's GDP data is released in the U.S. before putting on this correlation position.