Optimism for a new U.S. stimulus deal | 01 October 2020

01 October 2020, USD/JPY

Optimism for a new U.S. stimulus deal

USDJPY trading plan:

Optimism for a new U.S. stimulus deal had earlier buoyed the American stock market after U.S. Treasury Secretary Steven Mnuchin said talks with House Speaker Nancy Pelosi had made progress, and the House of Representatives duly postponed a vote on a $2.2 trillion Democratic COVID-19 plan to allow more time for a bipartisan deal to come together. Mnuchin said on Fox Business News that he would not accept the Democrats' proposed $2.2 trillion aid package, rather something closer to $1.5 trillion, adding that an agreement had been reached on direct payments to Americans. This is a good signal for the stock market and USD JPY, which has a correlation with the shares.

Trading recommendation: Buy 105.45 and take profit 105.85.

David Johnson
Analyst of «FreshForex» company
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