Chart below is indexed from Jan 2007.

It seems to me from the chart below that something has to give since the JPY/USD  Nikkei have generally moved upward together since the beginning of this year?

I’m not sure of the WHY, but it appears to my untrained eye that the price of gold is somehow a function of the dollar/Yen exchange rate and Japanese equities.   Any experts here with thoughts on this?  Could the Fed have been exchanging QE dollars for yen (equity purchases) 2009-2012 to keep it afloat and 2013-2016 (Fed taper but Abenomic yen printing took over equity purchase).  Then with 2016’s NIRP (mkt confidence shock & gold spike).  If this idea has any merit, the next question is who’s balance sheet is going to support Japanese equities going forward?

A noteworthy article at ZH.

http://www.zerohedge.com/news/2017-06-01/boj-ecb-balance-sheets-exceed-feds-first-time-ever-what-happens-next

It also appears to me that the direction of the Nikkei will coincide (inversely) with where PM’s are headed – US equities (Dow/Gold) that’s a side show, it seems to me for those interested in PM’s, it’s all about the Nikkei.  Thoughts….?