Bullish rally on the U.S. stock market | 22 Tháng bảy 2021

22 Tháng bảy 2021, USD/JPY

Bullish rally on the U.S. stock market

USDJPY trading plan:

Traders are looking to a mounting pile of cash at U.S. companies to provide support for the stock market in coming months, as executives announce plans to increase share buybacks, boost dividends. Cash on the balance sheets of S&P 500 companies has swelled to a record $1.9 trillion, compared to $1.5 trillion before the pandemic crisis in early 2020. Large amounts of cash give companies flexibility to take potentially share-supportive measures, including facilitating buybacks, which boost earnings per share. Companies may also raise dividends, making their stocks more attractive to income-seeking investors amid falling Treasury yields. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.

Investment idea: buy 110.05 and take profit 110.55.

David Johnson
Analyst of «FreshForex» company
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