The correlation between USDJPY and the stock market | 27 اكتوبر 2020

USDJPY trading plan:

Sell-offs in stock markets will have a negative impact on the value of USDJPY, as the currency pair correlates with stock markets. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin again failed to close major differences on a fresh package for a U.S. economy facing a renewed surge in Covid-19 cases. The lack of a deal and concern over rising infections saw the S&P 500 Index log its biggest drop in a month. There are over 43.4 million COVID-19 cases globally as of Oct. 27, according to Johns Hopkins University data. This is a negative signal for the stock markets.

Trading recommendation: Sell 104.85 and take profit 104.50.