The yield on 10-year U.S. debt climbed | 12 August 2020
12 August 2020, USD/JPY
USDJPY trading plan:
The yield on 10-year U.S. debt climbed by its most in two months overnight ahead of a record $38 billion auction later on Wednesday. The move up in yields is driven by both repositioning ahead of big issuance this week and a sense that the U.S. recovery is broadening and looking more robust. The producer price index for final demand increased 0.6% last month, driven by a surge in portfolio management fees and rising costs for gasoline. That was the biggest gain since October 2018 and followed a 0.2% decline in June. This is a positive signal for USDJPY.
Trading recommendation: Buy 106.50 and take profit 106.90.
The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
