Good news and bad news | 30 Desember 2019

USDJPY trading plan:

Good news and bad news. The good news is a bullish rally in stock markets. Chinese blue chips which had started the day lower, were up 1% in afternoon trade, bolstered by a report that 2019 retail sales are forecast to rise 8% and expectations that a new benchmark for floating-rate loans could lower borrowing costs and boost flagging economic growth. The bad news is a positive trend in the precious metals market. The gold market has benefits from the geopolitical tensions: risk of the U.S. President Donald Trump’s impeachment, six-month-long trade feud between Japan and South Korea, and ongoing protests in Hong Kong. This factor may cause investors to increase short positions on the USDJPY currency pair.

Trading recommendation: range 109.00 -109.50.