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JPYen liquidity withdrawal - Coincidence, or cause?
Last May we had a Japanese Yen liquidity withdrawal and PMs dropped.
Apparently the same thing just happened again last week.
Except that this pattern of PMs dropping has happened many times repeatedly when a certain number of short contracts has been written on COMEX.
And in both cases, (last week and last May) some commentators wrote just before the PM price drops, "watch out, the short position is in the historical position where PM prices drop ".
So where to lay the blame? JPY liqidity or a continuation of the historical pattern of COMEX shorts building up and liquidating?
Last May we had a Japanese Yen liquidity withdrawal and PMs dropped.
Apparently the same thing just happened again last week.
Except that this pattern of PMs dropping has happened many times repeatedly when a certain number of short contracts has been written on COMEX.
And in both cases, (last week and last May) some commentators wrote just before the PM price drops, "watch out, the short position is in the historical position where PM prices drop ".
So where to lay the blame? JPY liqidity or a continuation of the historical pattern of COMEX shorts building up and liquidating?