Gold to catch up to a stronger Yen

If the yen continues to strengthen beyond 100 per dollar, gold will make new highs.

• US Yields fail to hold higher
  
• USDJPY is at a critical support level around 100 which looks likely to break
  
• DXY appears to be headed south initially towards the brexit 61.8% retracement level at 94.76, and possibly 94
  
• Gold will rally under any such scenario, yet it remains below the July 8th / August 2nd lows in USDJPY
  

Expect gold to catch up to the July 8th / August 2nd highs (USDJPY lows) imminently, and rally to new highs (1375) if USDJPY closes below 100. Long gold with a stop on close below 1335.

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