We often see reversals on Wednesdays, but today could be a special one for us holders of gold and goldmining shares. Someone recently wrote an article showing a direct relation between the USD/Yen ratio (forex market) and the price development in gold and the mining shares. True enough, while the usd/yen rose continuously between October 2012 and May-July 2013 (driven by Abenomics), gold, silver and the mining shares got slaugthered.

If these were indeed forex driven algo's, which were long USD/Yen and short other markets like gold and the gold miners, there MAY be good news to come for us, either today or tomorrow. The dollar/yen ratio is 10 cents away from breaking down out of a large triangle at around 97.20. If that were to happen and the forex market, and in particular the USD/Yen ratio, is in fact determining what happens with gold, silver and the miners, we may have a very good month ahead and may have turned the corner for the medium and long term. Shortcovering might finally start, reflected by higher volumes. Tomorrow and Friday might turn out to be extremely good days.

It is just one theory out of many, but a plausible one in my opinion. We'll see.