UsdJpy is retracing from the tops of 121.85 where a bearish engulfing pattern had put a stop to the bull market. This movement is in line with the gold confirming how the strength of the yen on the US dollar is still a support element of the prices of the yellow metal. As we can see from the first graph, albeit with different volatility, the directionality of the two assets is the same and therefore the showdown of gold on Friday above 1250 should reasonably coincide with a fall of UsdJpy. We believe that 115.50 is the key level of UsdJpy beyond which the strength of the yen would be more consistent, a view also confirmed by the bearish signal emerged on Friday from the weekly MACD.
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