Yen has been selling off since start of the year…
While the correlation with metals isn’t perfect, I wouldn’t imagine a weak yen is helping the metals out at all. I am expecting $XJY to hold the 94 level on this correction. It will likely be touching the 55 week EMA this week or in the next few weeks. It’s been a long time since the yen corrected, so I suppose this is “healthy.” A perfect scenario would be a touch of the 55 week EMA and then it bounces and never looks back. The odds of that happening? Probably zero. I am expecting lots of fun and games between now and March.
BTW, the yen has closed red 7 days in a row–you definitely don’t see that often. The 5 day RSI is extremely oversold (only matched a few times in the last 5 years). If we are lucky it just bounces straight away and that will be it, but with our luck it will probably bounce and then make an undercut low, just for kicks.