Correlation between USDJPY and #SP500 | 29 March 2021

29 March 2021, USD/JPY

Correlation between USDJPY and #SP500

USDJPY trading plan:

A bullish rally in the US stock market will have a positive impact on the value of USDJPY, as the assets are correlated with each other. The S&P 500 Index climbed the most in three weeks. The U.S. outlook got a boost after President Joe Biden doubled the goal for vaccinations in his first 100 days in office to 200 million. The Federal Reserve Board announced that the temporary and additional restrictions on bank holding company dividends and share repurchases currently in place will end for most firms after June 30. "The banking system continues to be a source of strength and returning to our normal framework after this year's stress test will preserve that strength," Vice Chair for Supervision Randal K. Quarles said. This factor provides additional support to the stock market.

Investment idea: buy 109.51 and take profit 109.90.

David Johnson
Analyst of «FreshForex» company
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