From Tokyo With Love: Yields Threaten Another Squeeze — Gold Is Watching

From Tokyo with love

Japan’s 10-year is flirting with the upper end of the range we’ve traded in over recent weeks. The steep trend line and the 21-day both come in right here. Push it a bit higher and the risk of another squeeze starts to build again.

Source: LSEG Workspace

The 30 year

Japan 30 year still mostly stuck post that crazy move in mid January. 50 day comes in right at the big 3.5% level. Resistance around the 3.7% area.

Source: LSEG Workspace

The gold connection

The gold squeeze stopped just after Japanese yields took a breather. As we have been pointing out for long, gold knows what's going on in Japan, so watch those Japanese rates closely.

Source: LSEG Workspace

The only "end game" hedge

BTC isn’t the end-game hedge. Since Japanese rates started ripping higher last autumn, gold and BTC have moved in almost perfect opposition.