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The above chart looks at the Japanese Yen and the Thompson Reuters Equal Weight commodity index over the past 9-years, which reflects that the long-term trend for both remains lower.
Both peaked in 2011-2012 and declined for the next 5-years. Both bottomed in 2015-2016 and a have rallied over the past 30-months. Correlation between the two remains decent.
The decline in each of late has both testing 30-month rising support at (1). Is a breakdown in play? At this time it is too soon to tell. For sure an important support test is in play!
If both break support at (1), selling pressure could increase, suggesting that the long-term trend continues to influence both. Commodity bulls want to keep a close eye on both of these in the very near future, as these support tests look to be very important for portfolio construction.