Correlations


There is over an 80% negative correlation between the USD/JPY and the EUR/USD. So when one is up the other is down by roughly the same percentage.
ej.jpg

There is a positive correlation between 10-year Bond and pair USD/JPY
bondjpy.jpg

Sometimes, Corelation is broken for a while. For example,Inverse Correlation Between USD/JPY and Euro Broke Down
corbroke.jpg

A Example
On 08/24/10, I wrote on a FXCM forum that
" EUR/USD isn't filling up yet. AUD/USD has a positive daily correlation with E/U and S&P 500.
Then, It could decrease more a little bit to 0.87659. Hence, E/U could be going down more a little bit before it's taking off."

Then, That happened on 08/25/10 and I explained that in the forum
" Explain E/U was down at 3:00am (EST), and SP500 was down at 9:30am (EST) today. Thank you Mike supported J-charts of E/U and AUD/USD yesterday (check his previous posts at Forums E/U and AUD/USD) for this study. " This a chart of example
coreuau.jpg


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