From a website Forex Crunch, the writer list 5 currency pairs which are more predictable and least predictable.
The least predictable are:
1. USD/JPY
2. USD/CAD
3. GBP/JPY
4. EUR/CHF
5. GBP/AUD
And the more predictable are:
1. AUD/USD
2. EUR/GBP
3. NZD/USD
4. EUR/USD
5. USD/CHF
The least predictable pairs are hard to trade. They make wild swings, false breaks, or they make drawing trend lines on them quite impossible and have graphs that are very unhealthy. They don’t play by the rules of technical analysis.
The more predictable currency pairs are currency pairs that “play by the rules” of technical analysis. For example, if there’s a distinct resistance line or support line, than the pair will usually bounce when getting to close. Or, if this pair crosses the line, it does it “big time”, and makes a big move.
From www.mataf.net, I found out that for the last one hour USDJPY was highly correlated with EURUSD,EURJPY and GBPJPY and on daily basis it was highly correlated with EURJPY and GBPJPY.
The daily volatility in pips for the four currency pairs mentioned above is as follows:
1. EURUSD - 166.1 pips
2. USDJPY-118.30 pips
3. EURJPY-236.8 pips
4. GBPJPY-272.30 pips.
Based on the above information, I decided to drop my scalp trade on USDJPY and replaced by EURJPY since the pair has a high volatility and moved similarly as USDJPY and not the least predictable pair.
