Comparing the difference between the yields of the 10-year US and Japanese government bonds is a very effective method for trading the USD/JPY on FX. A useful tool for such yield comparisons is Trading View, which allows you to chart a variety of values, including forex, CFDs and virtual currencies.
TrdingView charts allow you to compare the movements of stocks in the FX market with those in other markets, and you can also chart the values of stocks in each market with calculations added to the prices of the stocks in each market.
In this article, we will show you how to use both to compare USD/JPY and the difference between the US and Japanese 10-year bond yields.
*Chart analysis is performed in the Trading View app and orders are placed in the XM Global app for smooth trading.
Displaying the yield difference between the 10-year Japanese and US Treasuries in Trading View
In the FX market, the difference in yields between government bonds of various countries is of interest, and in USD/JPY, the interest rate difference between the US and Japan is of interest, so paying attention to the difference in bond yields between the US and Japan makes it easier to get a sense of the market’s direction.
TradingView charts can display the 10-year bond yields (CFD prices) of the US and Japan.
In addition, you can add formulas to the prices of these issues.
In this article, I will show you how to display the US 10-year bond yield minus the Japanese 10-year bond yield on the chart.
- Download the Trading View application and display the USD/JPY chart.
- Enter “US10Y-JP10Y” in the search window for adding charts.
- The chart of the US-Japan interest rate differential and USD/JPY can be displayed on top of each other.
- Understand the direction of the chart of the interest rate differential.
- If the chart of the interest rate differential is pointing upwards, enter long USD/JPY, if it is pointing downwards, enter short USD/JPY and hold the position for a few weeks or months.
- Close the position if it is profitable or if the direction changes.