Yen and Gold
The yen is one of the most important alternatives to the U.S. dollar among fiat currencies. This is why there is often a positive link between the yen and gold: both assets are negatively correlated with the greenback and both are considered safe havens. However, the relationship is not a perfect correlation, as one can see in the chart below. This is because gold is not merely an alternative to the U.S. dollar, but also to the current monetary system based on fiat currencies. Therefore, it some cases the yen and the dollar both lose (or gain) ground against gold.
Chart 1: JPY/USD exchange rate (blue line, left axis) and price of gold (red line, right axis, London P.M. Fix) from 1968 to 2016.
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