Just as the AUDUSD had a remarkable correlation that lasted many years, this correlation is the new, hot pair. Oddly enough, now I will feel compelled to watch this unusual pair and see what I can learn and derive from it's existence. By the way, I learned of this from a neighbor and I can't take credit for finding it but I'm happy to hear your thoughts on what it means and whether it will continue to correlate or not.
I'll call this a "long" position for GBPJPY to catch up a little to SPY. The SPY is pushing new highs over these past few months while GBPJPY is making sideways price action since Year-End 2013.
There are notable differences in the charts and I hope that the markets don't keep just blindly following each other.
This also reminds me of AMZN and AAPL, right before they went different ways.
Comments
Pashabxl
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That's a nice correlation and you can also check CADJPY vs SP500..... Can be used as a leverage or hedging :-)
PapaAboo
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There is a difference between a correlation and and two similar-looking up-trends. People see what they want to see. Japanese monetary policies on one side, QE on the other... A couple of matching dips out of a dozen don't mean a correlation...
vlad.adrian
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It's not just gbp/jpy, there are other yen pairs that are well correlated. It all started with the Japanesse monetary policy, when they started devaluating the yen. I guess the correlation can be explained by risk aversion and risk apetite.