Gold and USD/JPY Rouse the Bears, Clean Trends?
After a week of headlines but restrained price movement, both gold and yen crosses shocked the market with sharp bearish moves to close trading. The heavily-publicized stimulus effort by the Bank of Japan has put the market on alert for any correction that threatens the efficacy of the policy authority and sends an acutely oversold currency scrambling for recovery. The top mover, however, was gold's third largest decline in over a decade to clear multi-year range support. What does this incredible move mean for trend and for the assessment of stimulus' influence on currency markets? We discuss these topics and the heavy event risk for next week in the weekend video.
Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.
Sign up for John’s email distribution list, here.