Gold Looks Great if You Live in Japan

• Posted by Greg Harmon
• on November 16th, 2012

Gold has been hit over the last few weeks and may still settle lower. But if you happen to be a wandering type, take a trip over to Tokyo. Visit the Emperors Palace and climb Mt. Fuji, oh and before you leave take a look at Gold from there. Priced in Yen the shiny yellow metal looks ready to break out higher. Using the ratio chart of the Gold ($GLD) against the Yen ($FXY) below as a guide there are at least 5 reasons to consider buying Gold in Yen. First, the ratio is breaking a bull

flag higher. The target on the pattern break is a move up to 1.50, of 9.5% higher. Next, the RSI is turning back higher, after holding bullish and supporting further upside. Third, the Bollinger bands are opening to the upside to facilitate a move higher. Fourth, the Moving Average Convergence Divergence indicator (MACD) has crossed to positive and is increasing, supporting a continued move higher. Finally, the ratio is above the 20, 50, 100 and 200 day Simple Moving Averages (SMA) which are all trending higher.

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