Correlation between USDJPY and SP500 | 07 March 2022

07 March 2022, USD/JPY

USDJPY trading plan:

Geopolitical worries are clouding the outlook for U.S. stocks. This is a bad signal for the stock market and USDJPY, which has a correlation with the shares. Traders have virtually priced out the chances of a hefty 50 basis point rate hike in March, giving a lift to the technology and growth stocks that had been pummeled in recent weeks by anticipation of harsh Fed tightening. Meanwhile, geopolitical concerns have propelled oil prices, prompting fears of slower growth and higher inflation over the long term. U.S. crude prices topped $115 a barrel this week and hit their highest levels since 2008. This is a negative signal for the stock market.

Investment idea: sell 115.00 and take profit 114.59.

David Johnson
Analyst of «FreshForex» company
Agree with the review?
Traders' opinion:
Close
Log in
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 .