We’re at a big spot on USDJPY here… I don’t have a crystal ball and I can tell investors are nervous about jumping long gold at such a key bounce area. I’m leaning towards USDJPY indeed cracking below 108.30, and gold/silver will come alive like an angry bear mid-winter hibernation. Just be prepared. Big IF. I’m very comfortable that USDJPY isn’t too oversold here after past few days of consolidation. Lastly, there’s nothing but air until ~104.70 if it does crack.

The obvious catalyst would be the market sell-off, which I have no clue if it’s overdone here or if there’s more to go. But if it keeps going that’s a large catalyst. If it bounces around, that’s not helpful but the USDJPY doesn’t necessarily have a correlation to a normal market – only a violently selling one.

The miners really surprised me today with their lack of enthusiasm, I’m guessing they may want to kiss that support 1-2% below here first before bouncing. But the formations on the miners hourly charts look like a bullish falling wedge.