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Recent analysis of a polarimetric synthetic aperture radar (PolSAR) velocity experiment has shown that azimuth ambiguities can provide useful information for the detection of moving targets with an across-track velocity component in PolSAR images using cross-polarization clutter cancellation. This paper examines this phenomenon using theoretical analysis and simulations and illustrates its application with experimental results. It is shown that, for reciprocal scatterers, the phase difference between HV and VH images is zero, whereas for HV and VH ambiguities, the phase difference is pi. For land applications, clutter cancellation is essential for the detection of moving targets in PolSAR images. For maritime applications, it can be used to distinguish images from ambiguities. However, it is important to note that the underlying physical reasons for the performance of clutter cancellation are entirely different from ground moving target indication along-track interferometric SAR. It is also shown that cross-pol clutter cancellation is related to filtering of a double-rate-sampled single-channel SAR signal.