Kindly explain the correlation between Japan Nikkei-225 with the currency pair USD/JPY. - Forex Questions and Answers - FXAnswer

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Kindly explain the correlation between Japan Nikkei-225 with the currency pair USD/JPY.

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1 year ago

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Japan

USD/JPY

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0 Votes A correlation can come and go. At times you may find that the 2 are positively correlated. Meaning if 1 goes up so does the other BUT correlations can change over time and become inversely correlated. So if the Nikkei would be going up the USD/JPY would be going Down and gaining strength as well by fuji022 1 year ago by fuji022 1 year ago
0 Votes Japan Nikkei-225 is a stock market index for the Tokyo Stock Exchange (TSE). A reasonable decline in the yen usually lifts stocks of export-oriented companies, which tends to boost the overall stock index. The Nikkei-yen relationship is sometimes reversed, wherein a strong open market in the Nikkei tends to boost the yen (weighs on USD/JPY) as investors’ funds flow into yen-denominated stocks. by Warren 1 year ago by Warren 1 year ago
0 Votes Japan Nikkei -225 represents the stock market index of Japan. When this market is strong Japense Yen becomes strong and vice versa. But it need not always be correlated with USD/JPY. Other facors also might be influenced. In general stron Nikkei market brings down USD/JPY and vice versa. by Suneetha 1 year ago by Suneetha 1 year ago
0 Votes Correlation can't be plainly stated because it can change due to changes in economic conditions, interest rates, government policies and market sentiment. At times, a strong Nikkei market would bring down USD/JPY and at times, a falling Nikkei index, would cause a bearish USDJPY, mostly prompted by risk aversion in force. by fxpie 1 year ago by fxpie 1 year ago
0 Votes They are positively correlated. by Lisa 1 year ago by Lisa 1 year ago

Votes

A correlation can come and go. At times you may find that the 2 are positively correlated. Meaning if 1 goes up so does the other BUT correlations can change over time and become inversely correlated. So if the Nikkei would be going up the USD/JPY would be going Down and gaining strength as well

fuji022

1 year ago

Votes

Japan Nikkei-225 is a stock market index for the Tokyo Stock Exchange (TSE). A reasonable decline in the yen usually lifts stocks of export-oriented companies, which tends to boost the overall stock index. The Nikkei-yen relationship is sometimes reversed, wherein a strong open market in the Nikkei tends to boost the yen (weighs on USD/JPY) as investors’ funds flow into yen-denominated stocks.

Warren

1 year ago

Votes

Japan Nikkei -225 represents the stock market index of Japan. When this market is strong Japense Yen becomes strong and vice versa. But it need not always be correlated with USD/JPY. Other facors also might be influenced. In general stron Nikkei market brings down USD/JPY and vice versa.

Suneetha

1 year ago

Votes

Correlation can't be plainly stated because it can change due to changes in economic conditions, interest rates, government policies and market sentiment.

At times, a strong Nikkei market would bring down USD/JPY and at times, a falling Nikkei index, would cause a bearish USDJPY, mostly prompted by risk aversion in force.