## Why does the USD/JPY link to the EUR/JPY, but the USD/JPY is negative to the EUR/USD

This is a discussion on Why does the USD/JPY link to the EUR/JPY, but the USD/JPY is negative to the EUR/USD within the First Steps forums, part of the Reception category; Originally Posted by random12345 Splitlink is this sarcasm or have you been into the snuff again....? USD is the control ...

Aug 9, 2013, 8:39am   #16
Joined Nov 2001
Re: Why does the USD/JPY link to the EUR/JPY, but the USD/JPY is negative to the EUR

Quote:
 Originally Posted by random12345 Splitlink is this sarcasm or have you been into the snuff again....? USD is the control if quoted first and therefore it is named correctly (i.e. 100 JPY to make a single USD). Just as the Euro is the static control in EUR/USD and you need 1.33 USD to make a single EUR.
Take a look at the charts and tell me again. The scale is Yen to the dollar, but the title does not conform to the rule, does it? If it does, what about the Euro/USD chart?

I always thought that the control was quoted second.
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 Aug 9, 2013, 10:09am #17 Joined Feb 2009 Re: Why does the USD/JPY link to the EUR/JPY, but the USD/JPY is negative to the EUR I just think of this as a fraction to help me, i.e. if you have the fraction a/b=2, then you'd probably agree a=2*b So EUR/USD=1.33 means 1 EUR = 1.33 USD If it was JPY/USD=96 then 1 JPY would be 96 dollars. Last edited by Shakone; Aug 9, 2013 at 10:16am.
Aug 9, 2013, 11:19am   #18
Joined Nov 2001
Re: Why does the USD/JPY link to the EUR/JPY, but the USD/JPY is negative to the EUR

Quote:
 Originally Posted by Shakone I just think of this as a fraction to help me, i.e. if you have the fraction a/b=2, then you'd probably agree a=2*b So EUR/USD=1.33 means 1 EUR = 1.33 USD If it was JPY/USD=96 then 1 JPY would be 96 dollars.
Yes, that's the way I do it, too.I have no problem,really, and have traded it for years and, when I brought it up, a long time ago I realised, afterwards, that it was not what OP was talking about in his first post and forgot about it.

Aug 9, 2013, 12:04pm   #19
Joined Jun 2012
Re: Why does the USD/JPY link to the EUR/JPY, but the USD/JPY is negative to the EUR

Quote:
 Originally Posted by Splitlink Take a look at the charts and tell me again. The scale is Yen to the dollar, but the title does not conform to the rule, does it? If it does, what about the Euro/USD chart? I always thought that the control was quoted second.
Da, the EUR/USD proves the USD/JPY cross as being correct. The latter currency requirement to buy a single unit of the the former is quoted on the Y-axis in both cases. They both conform to exactly the same rule.

1.33 USDs to buy the EUR. 100 JPYs to buy the USD.

Aug 9, 2013, 12:52pm   #20
Joined Nov 2001
Re: Why does the USD/JPY link to the EUR/JPY, but the USD/JPY is negative to the EUR

Quote:
 Originally Posted by random12345 Da, the EUR/USD proves the USD/JPY cross as being correct. The latter currency requirement to buy a single unit of the the former is quoted on the Y-axis in both cases. They both conform to exactly the same rule. 1.33 USDs to buy the EUR. 100 JPYs to buy the USD.
I know that. I've been trading these for years. Why is one called USD/JPN and the other Euro/USD?

It doesn't matter. If you can't see what I am getting at, forget it, it's not that important.

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Aug 9, 2013, 1:21pm   #21
Joined Jun 2012
Re: Why does the USD/JPY link to the EUR/JPY, but the USD/JPY is negative to the EUR

Quote:
 Originally Posted by Splitlink I know that. I've been trading these for years. Why is one called USD/JPN and the other Euro/USD? It doesn't matter. If you can't see what I am getting at, forget it, it's not that important.
Ah you just mean quotation priority??

The majors follow the policy of relative strength on inception of the cross (hence GBP/USD, NZD/USD and AUD/USD, while the JPY has always been a much smaller unit of relative value and ranks lowly in crosses and is almost always the quote currency), except for the Euro, which bucks the trend based on what I understood to be an ECB ruling regarding base dominance, though it only bucks the trend in regards to the GBP (off the top of my head) as it would have been quoted first over the USD following historical convention regardless since it opened at... something. 1.2 I think. Ish.

If that isn't what you mean then yeah I still don't get it.

Last edited by random12345; Aug 9, 2013 at 2:00pm.

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 Aug 9, 2013, 1:52pm #22 Joined Nov 2001 Re: Why does the USD/JPY link to the EUR/JPY, but the USD/JPY is negative to the EUR That answers my question fully. Thanks very much.
 Aug 9, 2013, 5:25pm #23 Joined Jun 2004 Re: Why does the USD/JPY link to the EUR/JPY, but the USD/JPY is negative to the EUR it would appear that explaining how they are measured seems almost as difficult as trading them ? N __________________ FXCorrelator http://www.trade2win.com/boards/fore...ml#post3035670 3 Duck Corrie http://www.trade2win.com/boards/fore...ml#post2773474 more goodies http://www.trade2win.com/boards/fore...ml#post2443624
Aug 9, 2013, 7:26pm   #24

Joined Jun 2009
Re: Why does the USD/JPY link to the EUR/JPY, but the USD/JPY is negative to the EUR

Quote:
 Originally Posted by NVP it would appear that explaining how they are measured seems almost as difficult as trading them ? N

“Any fool can know. The point is to understand.” - Albert Einstein

Aug 9, 2013, 10:37pm   #25
Joined Jun 2012
Re: Why does the USD/JPY link to the EUR/JPY, but the USD/JPY is negative to the EUR

Quote:
 Originally Posted by Splitlink That answers my question fully. Thanks very much.
Sorry if you took any offence earlier re base vs quote, I thought perhaps you were equities only or some such.

Aug 10, 2013, 7:52am   #26
Joined Nov 2001
Re: Why does the USD/JPY link to the EUR/JPY, but the USD/JPY is negative to the EUR

Quote:
 Originally Posted by random12345 Sorry if you took any offence earlier re base vs quote, I thought perhaps you were equities only or some such.
No problem. I must ask questions more clearly, next time, to avoid misunderstandings.