Good and bad news | 09 February 2021

09 February 2021, USD/JPY

Good and bad news

USDJPY trading plan:

Expectations that an aid package being pushed through Congress will come out closer to President Joe Biden's call for $1.9 trillion than a Republican proposal for $600 billion has helped fuel inflation expectations, providing a lift for the yellow metal, which is traditionally seen as an inflation hedge. This is a negative signal for this currency pair. A bullish rally in the US stock market may have a positive impact on the value of USDJPY, as the assets are correlated with each other. The excess reserves banks increased by $30.1 billion. This allows bankers to increase the volume of speculation in the stock market.

Investment idea: range 104.25 -105.25.

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David Johnson
Analyst of «FreshForex» company
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