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; I just think of this as a fraction to help me, i.e. if you have the fraction a/b=2, then you'd ...

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Old Aug 9, 2013, 10:09am   #17
 
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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.
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Old Aug 9, 2013, 11:19am   #18
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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 View Post
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.
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Old Aug 9, 2013, 12:04pm   #19
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Re: Why does the USD/JPY link to the EUR/JPY, but the USD/JPY is negative to the EUR

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Originally Posted by Splitlink View Post
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.
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Old Aug 9, 2013, 12:52pm   #20
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Re: Why does the USD/JPY link to the EUR/JPY, but the USD/JPY is negative to the EUR

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Originally Posted by random12345 View Post
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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Old Aug 9, 2013, 1:21pm   #21
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Re: Why does the USD/JPY link to the EUR/JPY, but the USD/JPY is negative to the EUR

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Originally Posted by Splitlink View Post
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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Old Aug 9, 2013, 1:52pm   #22
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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.
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Old Aug 9, 2013, 5:25pm   #23
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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 ?

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Old Aug 9, 2013, 7:26pm   #24
 
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Re: Why does the USD/JPY link to the EUR/JPY, but the USD/JPY is negative to the EUR

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

N


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