Good news and bad news | 28 July 2020

USDJPY trading plan:

Good news and bad news. The bullish rally in the gold market signals the development of a downtrend in the USDJPY currency pair. The Monday peak of $1,945.21 also reset the all-time high of $1,920.85 for spot gold from September 2011. Republicans led by President Donald Trump have finalized the fourth coronavirus relief bill, worth about $1 trillion, that will provide temporary and reduced extension of unemployment benefits, another round of stimulus checks, liability protection for businesses, and funding to help schools restart. It will also include $16 billion in new funds for testing and tax incentives to encourage companies to rehire employees. This is a good signal for the stock market and USD JPY, which has a correlation with the shares.

Trading recommendation: range 105.20 -106.10.