Positive dynamics of the US debt market | 28 Septiembre 2021

28 Septiembre 2021, USD/JPY

USDJPY trading plan:

Two-year Treasury yields surged to 18-month highs. Benchmark 10-year yields rose to 1.51%, their highest since June and held just below that at 1.50%. Growing inflationary pressures are also keeping investors nervous, with oil at three-year highs and Fed chair Jerome Powell flagging that price pressure as a result of reopening bottlenecks might be stickier than first thought. Monday data showing a surge in U.S. firms’ capital goods orders last month could also tilt Fed policymakers in favour of lifting rates sooner rather than later. This is a positive signal for the US currency!

Investment idea: buy 110.92 and take profit 111.40.

David Johnson
Analyst of «FreshForex» company
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