High volume of dollar liquidity | 18 September 2020

18 September 2020, USD/JPY

High volume of dollar liquidity

USDJPY trading plan:

The US Federal Reserve has released fresh data on changes in its balance sheet. The Federal Reserve's assets increased by $ 53 billion over the past week, while a week earlier the growth rate was only $ 7 billion. The Federal Reserve continues to actively buy Treasury and mortgage bonds in order to “soften” lending conditions in the United States. This is a negative signal for the American dollar, since additional liquidity has always led to reduce the value of the currency.

Trading recommendation: Sell 104.80 and take profit 104.40.

David Johnson
Analyst of «FreshForex» company
Agree with the review?
Traders' opinion:
Close
Login
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .