The biggest withdrawals | 25 August 2022

25 August 2022, USD/JPY

USDJPY trading plan:

Investors yanked a net $7.8 billion out of hedge funds in the second quarter, industry data published showed, as volatile markets sent many looking for safer places to keep their cash. Global hedge funds that bet on equity markets suffered the biggest withdrawals, losing $6.4 billion of the net outflows. Financial markets have tumbled in 2022 as investors were rattled by central bank monetary tightening to fight soaring inflation and fears of rapidly slowing economies. Volatility has soared and stocks tanked, handing many hedge funds large losses and forcing investors to sell out of riskier assets. This is a bad signal for the stock market and USDJPY, which has a correlation with the shares.

Investment idea: sell 136.80 and take profit 136.20.

David Johnson
Analyst of «FreshForex» company
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