Correlation with the stock market | 07 March 2019

07 March 2019, USD/JPY

Correlation with the stock market

USDJPY trading plan:

The decline in the yield of 10-year us Treasury bonds will have a positive impact on the U.S. equity market. Bond yields fall after the negative balance sheet for 2018-investors are full of pessimism. A 1.9 percent drop in exports of goods and services drove the trade deficit in December to $59.8 billion, the largest since October 2008. Imports of goods and services increased 2.1 percent to $264.9 billion in December. Capital flows will now leave the bond market and move to the stock market. This is a good signal for the stock market and USD JPY, which has a correlation with the shares.

Trading recommendation: Buy 111.62 and take profit 112.19.

David Johnson
Analyst of «FreshForex» company
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