Correlation between USDJPY and stock markets | 04 September 2019

04 September 2019, USD/JPY

USDJPY trading plan:

We're expecting the continuation of the bullish rally in the stock markets, which will have a positive impact on the value of USDJPY. Investors increase long positions due to lower yields on government bonds. The 10-year yield US bond as low as 1.4290%, the 2-year yield US bond was 3.5 basis points up. Federal Reserve officials say it is necessary to reduce interest rates. This is factor contributes to lower yields on government bonds. President Donald Trump said on Tuesday trade talks with China were going well, but he warned that he would be "tougher" if the discussions dragged on past the 2020 U.S. election and he won a second term. The blue-chip CSI300 index gained 0.5% after activity in China's services sector expanded at the fastest pace in three months in August, according to a business survey.

Trading recommendation: Buy 105.85 and take profit 106.40.

David Johnson
Analyst of «FreshForex» company
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