Loading ...Yen Mysteries
Instead of looking at how the USDJPY forex pairs correlates to Gold expressed in US Dollars… lets look how XAUJPY correlates to XAUUSD.
Looks like correlation strengthens when there is a gold bull era.. where the strength of gold is soo strong, that both currencies get “inline”.
Sir Patrick …you restore my faith in Millennials 🙂
This chart is fascinating !
LOOK at how Gold in Yen has not even beat the 1980s Gold in Yen Price yet ….but in USD Gold was More than 2X the 1980 spike price…interesting
( XAUJPY … is Gold in Yen .for those new to this stuff……)
I’m a generation X! But thanks for giving me a decade on my age… feels great! Back in the late 80’s I found a wallet on the side of the road.. inside was a 10k yen bill! I thought I was super rich… until I was told it was worth like 10$ … sigh
You read my mind Patrick
Have been looking at the exact same idea rather using GC1! & EURUSD……..my conundrum has been what time frame to use and what length. I lowered the length to 10 on the Weekly.
I’ve also been looking at the correlation between GC1! & GC1!*DXY/100. Check the correlation between GC1!*DXY/100 & XAUWCU you will know why I use GC1!*DXY/100……
The theory being evaluating the difference between currency movements in Au vs changes in value caused by currency fluctuation……..
Check them out Patrick would be interested in your interpretation. Been working on a theory of specific time frames when it is profitable to be in Precious metals either long/short/neutral. The nuts of it being if there isn’t a current correlation near 85% one should be cognizant of why? And what opportunities exist when the correlation is below or even negative?
FWIW I’ve found that DXY EOD on Tradingview has data as far back as the 70’s
Interested in your feedback Patrick.
*Rather GC1! & XAUEUR (not EURUSD)
I’m queuing this rabbit hole to #1!
Set my W BB to 30 as per your Weinstein GC1! and XAUEUR with the same W BB to 30 the correlation of both set to 10 overlay the SGR. Notice recently what occurred after a negative correlation returns to positive correlation. Likewise the same could occur below Weinstein 30WMA.
Interesting when chart when you do a correlation of GC1! & GC1!*DXY/100 then overlay the GSR onto the chart……