Inverse correlation between USDJPY and Gold | 02 December 2021

02 December 2021, USD/JPY

Inverse correlation between USDJPY and Gold

USDJPY trading plan:

A downtrend in the gold market will have a positive impact on the value of USDJPY, since assets have an inverse correlation. Fed Chair Jerome Powell said the central bank needs to be ready to respond to the possibility that inflation may not recede in the second half of 2022. Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up, translating into a higher opportunity cost for holding bullion, which pays no interest. The more hawkish shift in rhetoric from Powell really seems to be overshadowing for gold any bullish December seasonality factors and any bullish Impulse from the Omicron virus.

Investment idea: buy 112.90 and take profit 113.77.

David Johnson
Analyst of «FreshForex» company
Agree with the review?
Traders' opinion:
Close
Log in
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .
manager photo manager photo
Online-support
We will be pleased to answer any questions you may have

Write

Get bonus