Loading ...Le Bounce
Long term chart of USD/JPY . Look for gold to rally while the red wave E retraces 61.8% of wave D. After that the yen is likely to sell off sharply and take gold with it. Note the negative divergence suggesting a pull back on the weekly.
A cross check currency target would be if the Euro completes a wave 4 around 1.194. If the Euro breaks its last low at 1.162 then the pattern is broken and gold’s decline will accelerate.
Dollar bull market not ye over?
not yet over?
No, I think the dollar will go much higher. Short term probably 91/92 on a pullback
A rough correlation of USD/JPY with gold suggests a move to 107/108 will produce a $30-$40 bounce in gold
Given the COT positioning and OS conditions we may do a little better
If 1272 can be taken out then 1300 may be tested but I don’t think it will go higher than that
It’s not about the dollar being a better currency it’s about the rapidly accumulating dollar denominated debt