Looking at the stock market, the foreign exchange market is showing quite nervous price movements. Yesterday, the Dow Jones Industrial Average plummeted to $ 1200 at one point due to the deterioration of the financial results of US retailers. It looks like the weakness of the stock market has been revealed recently. The dollar-yen pair fell from the 129-yen level to around 128 yen, the euro-yen pair fell from the 135-yen level to the 134-yen level, and the pound-yen pair fell from the 160-yen level to the 158-yen level.
However, the trend of yen appreciation has not continued today. The dollar-yen pair fell below the 128-yen level in the morning, but then rebounded to 129 yen. The euro-yen rebounded from the 134-yen level to the mid-135 yen level, and the pound-yen pair rebounded from the 158-yen level to the 160-yen level. It’s a considerable return, if not enough to return the previous day’s drop. However, the stock market has only stopped declining, and it is not rising due to favorable factors. In the foreign exchange market, short-term position adjustment movements are in place.
The conventional wisdom such as the appreciation of the yen for risk aversion seems to be losing its sense of stability. It is a foreign exchange market where it is difficult to hold a position by a decisive decision. It may be necessary to have a diligent attitude, such as not being too greedy, giving up your head and tail, and taking profit.
The stock market remains weak. The exchange rate is like rewinding and adjusting the flow so far. So, if you think about it simply, it is assumed that it will be easier to buy back to JPY and EUR, which have been sold so far. USD is for sale. GOLD is repurchased.
Based on this idea, we are currently buying GOLD.