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

Splitlink

Legendary member
10,850 1,234
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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Shakone

Senior member
2,458 665
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.
 
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Splitlink

Legendary member
10,850 1,234
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.
 

random12345

Established member
793 280
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.
 

Splitlink

Legendary member
10,850 1,234
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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random12345

Established member
793 280
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. :cry:
 
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NVP

Legendary member
37,785 2,109
it would appear that explaining how they are measured seems almost as difficult as trading them ?

N
 

random12345

Established member
793 280
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.
 
 
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