Mixed signals | 07 August 2019

07 August 2019, USD/JPY

USDJPY trading plan:

The trade war between the US and China provoked high volatility in the stock markets. Stock markets have a strong influence on the course of trading in this currency pair. New sales of corporate shares will have a negative impact on the value of USDJPY. The good news for the bulls is the decline in US government bond yields. Record negative yields in Europe and Japan have also pushed U.S. yields lower as foreign investors seek bonds that offer income. Interest rate futures implied traders fully expect the Fed to lower rates again at its policy meeting next month.

Trading recommendation: range 105.80 -106.50.

David Johnson
Analyst of «FreshForex» company
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