Written by Rick Ackerman, Rick’s Picks
Yen’s Surge Holds Great Promise for Gold
The yen, whose behavior corresponds closely to gold’s, began 2019 with a giant leap that slightly pierced the 0.94148 midpoint resistance of the pattern shown in the chart below. This is bullish but would become still more so if the futures can close for two consecutive weeks above it.
The 1.03755 target is already in play, but it would become a lead-pipe cinch to be achieved once the March contract is trading decisively above the red line.
Pivoteers may have noticed that the pullback to the green line activated a ‘mechanical’ buying set-up. It took five months for the currency to get airborne after this happened, but the lengthy consolidation will likely contribute to the rally’s power.
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