The EURJPY is currently building out an Expanding Wedge (Megaphone) from the beginning of the year after bottoming June 2016 (Brexit). The EUR(+), JPY(-), and USD(-) all are correlated (+/-) to Gold majority of the time. For the last several months the Euro has been dominated by worries over French Elections and fell out of correlation. This past week the Euro recovered strongly against the JPY & USD once the markets were assured of Le Pen’s defeat in the second round. If looking at a normal EURJPY chart the wedge pattern is bullish to the topside.

THIS is an Inverse chart of EURJPY so the pattern will look bearish.

This second chart allows us to compare the Inverse EURJPY to GOLD (black line). If the wedge does break it would be very BEARISH for GOLD. For those of you who trade currencies this could be a very good trade (Long EURJPY) over the next 6-7 months.