Silver continues to move higher as gold/silver ratio tests multi-month lows.
The market remains extremely bullish. Traders ignore rising yields and stronger dollar.
Importantly, there's no serious resistance in the $96-$120 range so the rally may intensify if silver climbs above the $96 level.
Silver markets are showing signs of life as traders prepare for the potential peace deal in the Middle East.
Gold/silver ratio is at multi-week lows, which shows that speculative money has already started to move into silver.
Technically, silver will likely need to get above the $84-$86 area to confirm the breakout.
BoJ Intervened again, briefly pushing USD/JPY towards 155.00. Bulls quickly used the pullback to increase bets against the yen.
BoJ risks losing the status of free - floating currency for the yen if it keeps intervening. The interventions are not strong enough to make a real difference.
If BoJ fails to push USD/JPY below 155.00 during the next intervention, USD/JPY will ultimately get to another test of the 160.00 level.
Iran's attack on UAE fueled a strong rally in the oil markets and puahed Brent oil towards $115.
The key resistance is at $119 area. A move above $120 will likely trigger a wave of panic purchases, pushing Brent towards $130 - $135.
Finally, BoJ Intervened to support the yen. The Bank of Japan had no other options as pressure on the yen would have intensified if USD/JPY remained above 160.
However, the game has just begun. BoJ must push USD/JPY towards January lows near 152 to show it has sufficient firepower to support the yen.
In case the intervention turns out to be a one-time event, USD/JPY will quickly get back to the previous trend, making the task even harder for BoJ.
Brent oil climbed above the $110 level as traders ignored UAE's decision to leave OPEC and focused on US - Iran talks.
There are no signs of progress in negotiations, while the physical market gets tighter day by day. If the Strait of Hormuz stays closed until the driving season, oil prices may skyrocket towards historic highs.
WTI oil pulled back from session highs as President Trump said that Iran wanted a deal.
Prices moved higher as US started a naval blockade of Iran. However, some traders are ready to bet that US and Iran will reach a deal soon.
Trades should note that the futures market doesn't reflect the reality of the physical market. If negotiations fail, prices may easily move above the $120 level.