A YEN for Gold
Like Gold, the YEN is still considered a safe haven currency. In times of stress the Japanese sell foreign assets and pull their currency home.
The pair are not as tightly joined at the hip as they were a few years ago, but the correlation is still evident. Now when the YEN drops against the US dollar Gold sags a bit. When the YEN rises against the US dollar Gold rallies even faster.
Its beginning to look as though the YEN’s break below the rising trend line this month was a false break.
Here is a daily chart of the Japan Nikkei index. Notice the RSI and MACD negative divergences leading into the potential double top. They strongly suggest the Nikkei’s next move is down. When the Nikkei goes down the YEN goes up. I expect Gold will too.
Nice work SF
Yes…I missed this false BO
Very significant
Thanks Foxy