Which currency pair is stronger and goes up? Understand exchange charts

This article is not intended to predict exchange rate fluctuations. Some background information on how to read currency pair exchange charts.

If the dollar/yen dollar is stronger, can you quickly answer whether the chart goes up or down?

Recently, the rapid depreciation of the yen has become news, and people who are not involved in financial affairs often see exchange rates.

The exchange rate is called dollar/yen, euro/yen, or euro/dollar for each currency pair.

And the exchange chart shows the fluctuation of the exchange rate in chronological order, making it easier to visually understand the direction and fluctuation rate.

Now for the question.

Can you quickly answer whether the dollar/yen chart will go up or down if the dollar is stronger?

What about the Euro/dollar?

I think it's probably easy for people like traders who look at charts every day, but it may be difficult for foreign currency deposits because they don't look at charts every day.

There is a way of thinking that can instantly tell which currency pair will rise or fall if it is strong on the exchange chart, so I will introduce it.

Use the seesaw principle.

A balance scale would be fine too.

There are many currency pairs in the market, such as dollar/yen, euro/dollar, euro/pound, Australian dollar/Swiss franc, but the dollar-yen is rarely the yen-dollar.

The alignment of this pair is very important, universal, and deeply related to charts.

Let's put the dollar and the yen on a seesaw and think about it.

The dollar is on the left and the yen is on the right, in order of dollar/yen.

And if the dollar is stronger,

Since the dollar is heavy, the seesaw will rise to the right.

Try applying the seesaw plate to the chart.

It's easy to see that when the dollar is stronger, the chart goes up.

Conversely, if the yen is stronger,

Since the circle is heavy, the seesaw will drop to the right.

If you apply it to the chart, you can see that when the yen is stronger, the chart goes down.

With this principle in mind,

When the GBP/dollar pair is stronger, we know that this pair is going up.

When the NZ dollar/yen is weaker, you can see that this pair is going down.

If you can't decide which way to go, try to imagine a seesaw in your mind.

Image Quote: