Ahead of the CPI data from the US, we do have a two sell signals attached to the American Dollar. First one is direct and its sell on the USD/JPY and the second one is indirect and its a buy signal on the Gold (driven mostly by the weaker USD).
Yesterday, USD/JPY broke super important support on the 108.3 and today, the price is making lower lows and lower highs, which is a confirmation of the bearish intentions and decreases the chance for a false breakout.
Gold defended the 1307 USD/oz support along with the 38,2% Fibonacci. We also broke the upper line of the wedge formation. All that is positive and creates a mid-term buying opportunity.
S&P 500 is still doing good. Major up trend lines and Fibonacci were defended. We are very close to form a full V shape reversal, which should not be a surprise as American indices did that many times before. Why they should not do that again?