The spread of Omicron | 30 December 2021

30 December 2021, USD/JPY

USDJPY trading plan:

Asian and European shares flatlined on a slow as the spread of Omicron clouded what is the last trading day of the year for many exchanges. With coronavirus cases hitting record highs, many countries are trying to limit the economic damage by relaxing rules on isolation rather than resorting to lockdowns. Bond markets have been stressed by the persistence of U.S. inflation and a resulting hawkish turn by the Fed, with investors now pricing a first-rate hike as early as March or May. Two-year yields have shot up 55 basis points since September to stand at 0.75%, near the highest since March last year. This is a bad signal for the stock market and USDJPY, which has a correlation with the shares.

Investment idea: buy 115.30 and take profit 114.85.

David Johnson
Analyst of «FreshForex» company
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