Gold & The Yen by Tyler Yell
Different financial markets can be related in ways you least expect. Here, we’ll look at the relationship between the gold market and the Japanese yen.
Financial markets, much like the human body, are surprisingly interrelated. If one part of the body is ill, then feelings of malaise or weakness will likely permeate through the body. In a similar fashion, if one market sneezed, another may figuratively catch a cold due to common driving factors. Learning how one market can affect another market, either for good or bad, is the premise of intermarket analysis. This type of analysis can help you apply analysis from one market to another, which I’ll do here with gold and the yen (JPY).
INTERMARKET ANALYSIS EXPLAINED
Intermarket analysis involves taking a cause & effect mindset. This type of mindset is common across all markets but most common in fundamental analysis, where one economic news release can cause traders and investors to look to the effects of their investment. In other words, all markets are related. What happens in a bond or commodity market can impact a currency or equity market...