USD/YEN breaks through resistance
The USD/YEN is breaking above the falling resistance line after clearly bottoming out at a very strong combination of support levels.
Today we see a pause, but not a debunking of the outbreak.
This implies that the medium-term USD Index rally is probably about to begin – very likely, not just likely.
Yes, gold rose last week, but so what?
The Fed simply cut rates more than expected (the expectation was between 0.25% and 0.5%), and the markets are still reacting to it – that’s quite normal. It is likely that the USDX will still rise, and the big rallies will undoubtedly cause a significant drop in gold and junior mining. And even if they are not large, there is still a chance of some decline in the metals and mining sectors and THEN would be a good opportunity to exit the short positions (profitably or not) – IF we saw that gold and mining companies held up very well despite the USD Index rally. Not now.
The stock market rally is likely to be wiped out any day now in buy-the-rumor-sell-the-fact fashion, the USDX has most likely bottomed out and the GDXJ looks the same as it did in 2022. In fact the last The year of GDXJ’s performance looks exactly like a zoomed-in version of what we saw in late 2021 and early 2022.