Bullish rally in the Chinese stock market | 08 Julio 2020

USDJPY trading plan:

Orders for infrastructure materials and equipment have helped industrial output recover faster in China than most places emerging from COVID-19 lockdowns. The share prices for Chinese blue chips struck five-year highs, as state-funded infrastructure projects drove up bullish rally in the stock market. Underpinned by robust infrastructure demand from China, the Baltic dry index, which tracks rates for ships ferrying dry bulk commodities and reflects rates for capsize, surged about 257% in June from a low struck in May due to the freeze in global trade as a result of the lockdowns. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.

Trading recommendation: Buy 107.42 and take profit 107.88.