JLS: JPY-Pegged Pairs Prices by BOJ & Central Banks
As illustrated by the major pairs FX prices, the USDJPY has been turrning from her upper band/ceiling to her lower band/lower ceiling of her exchange rate target zone and at the same time the major pairs of NZDUSD, CADUSD, AUDUSD, GBPUSD and the EURUSD still underway from their upper bands/ceilings to their lower bands/ceilings of their exchange rate target zones.
Accordingly, the NZDJPY, CADJPY, AUDJPY, GBPJPY and EURJPY prices are being pressured or compressed by the USDJPY price to downward and at the sametime compressed by NZDUSD, CADUSD, AUDUSD, GBPUSD and EURUSD to their lower bands/ceilings. The NZDJPY, CADJPY, AUDJPY, GBPJPY and EURJPY's target zones are by products of USDJPY target zone and the target zones of the NZDUSD, CADUSD, AUDUSD, GBPUSD and EURUSD. As a result, the NZDJPY, CADJPY, AUDJPY, GBPJPY and EURJPY prices will be pressured down to their lower bands/ceilings with their final lower bands/ceilings are based on the final lower band/ceiling of the USDJPY and the final lower bands/ceilings of the NSDUSD, CADUSD, AUDUSD, GBPUSD and EURUSD.
And/or, the prices of NZDJPY, CADJPY, AUDJPY, GBPJPY and EURJPY will be compressed to downward to their lower bands/ceilings without exception. Thus, short trade on JPY-pegged pairs offer the profit opportunity and and long trade offer the risk opportunity. By knowing the directional price trends then the short trading operation could be very profitable from their interdays high (upper price trend channels) to their interdays lows (lower price trend channels).
All this pairs are consistently traded with short trading operation by multiple tranches until they reach their lower bands/ceilings. This is the currency band method by pricing the FX prices collectively rather than individually by using technical model.
Accordingly, the NZDJPY, CADJPY, AUDJPY, GBPJPY and EURJPY prices are being pressured or compressed by the USDJPY price to downward and at the sametime compressed by NZDUSD, CADUSD, AUDUSD, GBPUSD and EURUSD to their lower bands/ceilings. The NZDJPY, CADJPY, AUDJPY, GBPJPY and EURJPY's target zones are by products of USDJPY target zone and the target zones of the NZDUSD, CADUSD, AUDUSD, GBPUSD and EURUSD. As a result, the NZDJPY, CADJPY, AUDJPY, GBPJPY and EURJPY prices will be pressured down to their lower bands/ceilings with their final lower bands/ceilings are based on the final lower band/ceiling of the USDJPY and the final lower bands/ceilings of the NSDUSD, CADUSD, AUDUSD, GBPUSD and EURUSD.
And/or, the prices of NZDJPY, CADJPY, AUDJPY, GBPJPY and EURJPY will be compressed to downward to their lower bands/ceilings without exception. Thus, short trade on JPY-pegged pairs offer the profit opportunity and and long trade offer the risk opportunity. By knowing the directional price trends then the short trading operation could be very profitable from their interdays high (upper price trend channels) to their interdays lows (lower price trend channels).
All this pairs are consistently traded with short trading operation by multiple tranches until they reach their lower bands/ceilings. This is the currency band method by pricing the FX prices collectively rather than individually by using technical model.