A rare look at an very long term chart of the dollar yen, and my interpretation.

I love bollinger bands – in my opinion, they’re one of the most helpful & trustworthy indicators out there.

A monthly chart of USDJPY is below. As far back as the data goes, you’ll notice USDJPY has a tendancy of “acknowledging” or “respecting” the middle bollinger band. That brings me to my observation. You’ll notice the currency has been hanging on to the middle band for dear life since Feb 2017. This current monthly candle seems to be giving it up – at least for now. We’ll see how the month finishes. But if it does continue to fall, the next monthly support I see is around 105.00

^^ A closer look ^^

^^Weekly confirmation? ^^

You’ll see the weekly chart is looking dim as well. The lower bollinger is starting to expand downward, and price could end up chasing that bollinger. But currently, 109.00 has been support during 2017 so we’ll have to see if it holds up.

 

Lastly, we know by now what a continued downward spiral in the USDJPY means for gold.