Big Picture Currency Views, USD & Yen of Note for Gold Bugs

Updating the technical situation of various currency indexes using some old monthly charts.

Uncle Buck dropped to test support, held it and is at a new cycle high.  It has hit and exceeded its conservative measurement of 101-102, but a less conservative measurement is to 106-108.

us dollar

Johnny Yen bounced as expected and hit the expected target.  Why do I report this after the fact as if I knew it was coming?

yen

Because I had been reporting it… and reporting it… for months before it actually happened.  We used this USD/Yen analog to note the similarities, offset by about a decade.  According to this road map Yen rallied equivalent to USD circa 2005.  If the analog holds true then Yen is going to make new lows.  As a side note, gold bugs had better not be rooting for gold’s correlation to Yen to continue if the analog is to hold up.

us dollar and japanese yen

Moving on to the rest of the sorry bunch, Canada dollar turned resistance to support and then turned it right back to resistance again.  This month it made a test of the breakdown and has thus far failed it.

canada dollar

Aussie dollar is better in refusing to break down, but not bullish.

australia dollar

Euro Brexit, blah blah blah.  Euro Italian banks, blah blah blah.  Euro the Draghi, blah blah blah.  Euro bearish with a measured target of 80, blah blah blah.

euro

British Pound Brexit, blah blah blah.

british pound

Swissy remains in the breakdown we noted back in 2015.

swiss franc

Bottom Line?  When looking at the world through a currency lens, Trump’s America is already great again.  That’s not me saying that.  It’s the charts.  What’s more, gold bugs – who I know make up a decent portion of my readers – had better hope that gold detaches from its Yen relationship if the USD/Yen analog continues to hold true.  Yes, the contrary setup I have been going on about is right there too (10yr Treasury).  If I expect T bonds to bounce, I probably expect gold and Yen to bounce too.  But we are talking big picture in the charts above.

jpyusd, gold, silver, t bonds

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