GOLD and JPY Correlation!

Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst.

We all know that GOLD and JPY are usually positively correlated. Means when Gold goes up, JPY pairs goes down due to JPY strength.

Gold is currently sitting around a critical area 1675 - 1700 zone that has been respected since 2020.

Here are the possible scenarios:

1- Rejection (blue projection)

Gold rejects the 1700 support zone and trades higher. In this case, we will be expecting a reversal bearish movement on USDJPY.

The next resistance for would be 1760 while the next support for USDJPY would be 135

2- Breakout (purple projection)

Gold breaks below 1700, in this case an over-extended bearish movement would be expected. On the other hand, a continuation to the upside would be expected for USDJPY to test the 150 supply and upper brown trendline.

Which scenario do you think is more probable and why?

Always follow your trading plan regarding entry, risk management, and trade management.

Good luck!

All Strategies Are Good; If Managed Properly!
~Rich