5:37 am PST. The FXY made a new low this morning as expected, and silver and gold sold off too. My eventual target for USD/JPY is about 120, some months from now. The USD/JPY needs to consolidate for a bit right now, but eventually it will strive for the 120 target. This means gold and silver are also at risk of breaching below their Dec. 3, 2015 lows. Any buying of gold and silver right now is simply counter trend.

The FXY needs to close this morning’s gap down in order for it to have a more meaningful bounce. If not, then 85.50 becomes possible.