Is the Yen Dollar Movement correlated decisively to the movement in GOLD and Silver ?
Commodities such as Gold and Silver benefit as safe haven assets, as do dollar and yen against other currencies. This would imply that all four should be strong together, or weak together depending upon prevailing risk sentiment. In normal circumstances currencies strengthen when the country is perceived to be economically strong, and weaken when the opposite is true. This is not however the case with the Dollar at the moment, as the dollar seems to weakens when the US is strong, as risk appetite increases, and investors sell this safe haven currency, to get into other riskier assets. This is not the same relationship for good news / bad news in Japan. This is why, in the current US economic climate and Quantitive Easing, we have seen strong Yen gains against the dollar over time, whilst also seeing commodity gains for Gold and Silver.
