Many major economies will enter recessions | 05 Julio 2022

05 Julio 2022, USD/JPY

Many major economies will enter recessions

USDJPY trading plan:

Many major economies will enter recessions over the next 12 months amid tightening government policies and rising living costs, pushing the global economy into a synchronized growth slowdown. The central banks looking to restore their inflation-control credibility are likely to err on the side of tightening policy too much even if it sacrifices growth, before cutting rates in 2023. Increasing signs that the world economy is entering a synchronized growth slowdown, meaning countries can no longer rely on a rebound in exports for growth, have also prompted us to forecast multiple recessions. High inflation is likely to persist as price pressures have spread beyond commodities to services items, rentals and wages. This is a bad signal for the stock market and USDJPY, which has a correlation with the shares.

Investment idea: sell 136.05 and take profit 135.33.

David Johnson
Analyst of «FreshForex» company
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