Wednesday, October 23, 2013

Gold and the Yen

For some time I have noticed what appears to be a correlation in the way gold trades and the Japanese Yen trades intraday. As well as a looser correlation with the daily prices of the two.
In the charts below I illustrate a recent example of the intraday similarity in the price movements and then a longer term Yen chart.

The long term Yen has the look of  bottom being formed and with a move coming soon. A move up in the yen should push the USD down further and faster. Maybe.
At any rate, if the Yen goes up I expect Gold to do the same.
The charts:


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