Positive signals | 20 Enero 2022

20 Enero 2022, USD/JPY

Positive signals

USDJPY trading plan:

Bank of Japan kept its interest rate targets unchanged. U.S. Treasury yields extended gains during. The 10-year yields hitting their highest since January 2020, as traders prepared for the Federal Reserve to be more aggressive in tackling unabated inflation. This is a positive signal for the dollar. Markets now bet on at least four interest rate hikes by the Fed this year, with expectations for the first having been brought forward to March. Chinese government bond yields fell across the curve after an official's comments heightened expectations the country's benchmark lending rate will be cut as early as this week to shore up the cooling economy. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.

Investment idea: buy 114.24 and take profit 114.88.

David Johnson
Analyst of «FreshForex» company
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