Good and bad news | 12 April 2021

12 April 2021, USD/JPY

Good and bad news

USDJPY trading plan:

In the interbank lending market in New York the Secured Overnight Financing Rate is still significantly lower than the Fed rate. This indicates a surplus of dollars from bankers. During such periods the US currency shows a decline. The bullish rally in the US stock market will have a positive impact on the value of USDJPY as the assets are correlated with each other. All three major U.S. stock indexes posted weekly gains as upbeat economic data boosted risk appetite ahead of first-quarter earnings. The solid U.S. inflation data and an uptick in Treasury yields suggested the economic recovery from the pandemic-related recession was gaining momentum.

Investment idea: range 109.20 - 110.20.

David Johnson
Analyst of «FreshForex» company
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