USDJPY Is Perhaps the Best 'Risk' Measure of the Yen Crosses

The Yen crosses represent one of the FX market's most prominent risk-focused opportunities. Like chasing higher returns in dividend stocks or high-yield fixed income, the carry trade this represents is a well-known strategy. Among these crosses, few offer the consistent risk focus that USDJPY carries. Here we have the 20-day correlation coefficient for USDJPY vs the Nikkei 225 (Japan's equity benchmark). High and consistently high.