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.
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We suggest waiting until after tomorrow's GDP data is released in the U.S. before putting on this correlation position.