Those of us who trade gold daily has learned to notice that the market responds to a never-ending cycle of “risk-on” and “risk-off”. A sharp decline of Yen pairs with the Yen as the second currency such as the EUR JPY shows risk-off sentiment news must have hit the media for the time being. A quick check shows that the stock market is dropping and, course Gold is skyrocketing for the time being because of this cycle of risk-off sentiment. It is like clockwork and can be used in trading with an understanding of how to identify market turning points that are known to highly probably end of corrections or ends of trends.
