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We derive a phase-entanglement criterion for two bosonic modes that is immune to number fluctuations, using the generalized Moore–Penrose inverse to normalize the phase-quadrature operator. We also obtain a phase-squeezing criterion that is immune to number fluctuations using similar techniques. These are used to obtain an operational definition of relative phase-measurement sensitivity via the analysis of phase measurement in interferometry. We show that these criteria are proportional to the enhanced phase-measurement sensitivity. The phase-entanglement criterion is the hallmark of a new type of quantum-squeezing, namely planar quantum-squeezing. This has the property that it squeezes simultaneously two orthogonal spin directions, which is possible owing to the fact that the SU(2) group that describes spin symmetry has a three-dimensional parameter space of higher dimension than the group for photonic quadratures. A practical advantage of planar quantum-squeezing is that, unlike conventional spin-squeezing, it allows noise reduction over all phase angles simultaneously. The application of this type of squeezing is to the quantum measurement of an unknown phase. We show that a completely unknown phase requires two orthogonal measurements and that with planar quantum-squeezing it is possible to reduce the measurement uncertainty independently of the unknown phase value. This is a different type of squeezing compared to the usual spin-squeezing interferometric criterion, which is applicable only when the measured phase is already known to a good approximation or can be measured iteratively. As an example, we calculate the phase entanglement of the ground state of a two-well, coupled Bose–Einstein condensate, similarly to recent experiments. This system demonstrates planar squeezing in both the attractive and the repulsive interaction regime.