JPY Gold Silver Update

The Japanese Yen is making headlines. And not the kinds of headlines that sound bullish -- the exact contrarian indicator for actually building a bullish case.

Here's one headline I just found (though it's not new): Shorting Yen Could Be Hedge Funds’ Favorite Trade in 2013

Here a few other points:

• Sentiment is ultra low. One of my friends even mentioned that the DSI is at 7% - the lowest in 8 years at least
• Like many other bloggers, Mish has been talking several times about how low is going and how fundamentals are supporting these levels. Well, whoever thinks in terms of fundamentals when it comes to markets is just rationalising, and at this levels, they are rationalising a trend that is about to reverse.

In the meantime, gold and silver have been scrapping bottom for several weeks, and I think a tradable bounce has started a few days ago.