Inverse correlation with precious metals | 17 Septiembre 2021

USDJPY trading plan:

Gold slid nearly 3% and silver lost over 5% as strong U.S. retail sales data boosted the dollar and gave ammunition to bets that the Federal Reserve may hasten its tapering. This is a positive signal for the dollar, since the US currency has an inverse correlation with precious metals. Unless there is some geopolitical event or a Fed surprise, metal's trajectory is unlikely to change going. The strong retail sales figures show consumer sentiment is starting to come back, a good indicator for the Fed to bring in those expectations on the next rate hike. There are a lot of members in the FOMC in favor of commencing tapering this year.

Investment idea: buy 109.69 and take profit 110.17.