USD/JPY inverse relationship with gold price becomes significant
USD/JPY trades to a fresh monthly low (130.54) while the price of gold registers a fresh yearly high ($2010) amid the ongoing weakness in US Treasury yields.
The inverse relationship between USD/JPY and the price of gold may gain increased attention as the correlation coefficient falls to -0.92 from a less significant reading of -0.58 earlier this month.
USD/JPY Rate Outlook
USD/JPY struggles to trade back above the 50-Day SMA (132.54) as it extends the series of lower highs and lows from last week, with a break/close below 128.90 (61.8% Fibonacci retracement) raising the scope for a run at the February low (128.08).
Nevertheless, USD/JPY may stage further attempts to push back above the moving average if it continues to hold above 128.90 (61.8% Fibonacci retracement), with a move above 133.30 (50% Fibonacci retracement) bringing the 137.70 (38.2% Fibonacci retracement) area back on the radar.
--- Written by David Song, Strategist
Follow me on Twitter at DavidJSong
The inverse relationship between USD/JPY and the price of gold may gain increased attention as the correlation coefficient falls to -0.92 from a less significant reading of -0.58 earlier this month.
USD/JPY Rate Outlook
USD/JPY struggles to trade back above the 50-Day SMA (132.54) as it extends the series of lower highs and lows from last week, with a break/close below 128.90 (61.8% Fibonacci retracement) raising the scope for a run at the February low (128.08).
Nevertheless, USD/JPY may stage further attempts to push back above the moving average if it continues to hold above 128.90 (61.8% Fibonacci retracement), with a move above 133.30 (50% Fibonacci retracement) bringing the 137.70 (38.2% Fibonacci retracement) area back on the radar.
--- Written by David Song, Strategist
Follow me on Twitter at DavidJSong
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