The bullish rally in stock markets | 24 September 2021

24 September 2021, USD/JPY

The bullish rally in stock markets

USDJPY trading plan:

U.S. Treasury yields jumped on Thursday after the Federal Reserve opened the door to raising interest rates as early as next year. The U.S. central bank said it would reduce its monthly bond purchases "soon" and half of the Fed's policymakers projected borrowing costs will need to rise in 2022. The five-year note rose above 90 basis points for the first time since early July after the Fed said on Wednesday it would reduce its monthly bond purchases "soon" and half of the central bank's policymakers projected borrowing costs will need to rise in 2022, a more hawkish tilt than in the past. The Fed's reverse repo facility, which provides approved money managers the option to lend money overnight to the U.S. central bank in return for Treasury collateral, set a fresh record $1.352 trillion. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.

Investment idea: buy 110.19 and take profit 110.58.

David Johnson
Analyst of «FreshForex» company
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