The rush for protection | 04 Noviembre 2022

04 Noviembre 2022, USD/JPY

The rush for protection

USDJPY trading plan:

Trading in S&P 500 put options, typically used as a play in defensive positions, outnumbered calls, usually employed for upside wagers, 1.5-to-1 on Thursday afternoon, the most defensive the measure has been since mid-October. The rush for protection comes after Fed Chair Jerome Powell signaled that while interest rates may rise by smaller increments in the months ahead, the central bank will likely take its policy rate higher than previously expected to fight surging consumer prices. The hawkish message was a disappointment to investors following a rally that saw the S&P 500 gain around 8% since mid-October through Tuesday on hopes that the Fed was close to a shift in the aggressive monetary policy that has bruised stocks this year.

Investment idea: buy 147.79 and take profit 148.50.

David Johnson
Analyst of «FreshForex» company
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