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USD/JPY
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The Exchange Weekend Trend Update: Is the US dollar Index the best way to put on a currency trade?

The DXY or US dollar Index is often brought up as a way to play currency fluctuations, particularly as a "safety trade". In this video, I take a look at how the DXY did in the Corona Panic of Q1, 2020 and how it's done since as compared to some other individual USD pairs available in futures form. As a trend follower, I track all the major USD crosses and don't follow the DXY. I see a benefit in the diversification, and as my video shows. There are extra returns to be had both in risk off, and risk on market regimes looking at individual pairs vs DXY. @Weston Nakamura this seems right up your alley and I'd like to know what you think is the best way to play currencies in risk on/off situations.Β 

Hi RVers,
Is anyone aware of another USD index that is weighted differently to the DXY?

Due to the dominance (circa 58%) of the EUR in the DXY I think the index has lost a fair bit of its value as material moves can be driven by EURO events and dont necessarily equate to what it use to. For example fear of a EURO break up.

On balance at the moment i am more likely to follow USD/JPY. But trying to do batter than that.

PS: It appears that USD/JPY is peering over the abyss at the moment
Usd/Jpy has been in a range for several months. I'm short, have been for a while. I feel a move below par is coming, but we first need to clear below 104 and hold.