Correlation between USDJPY and #SP500 | 16 tháng Tám 2021

16 tháng Tám 2021, USD/JPY

Correlation between USDJPY and #SP500

USDJPY trading plan:

The bullish rally on the US stock market will have a positive impact on the value of USDJPY, since the assets are correlated with each other. Last week, investors were frightened by the Fed statements about a possible reduction of stimuli at the next meetings. Rhetorically, everything looks scary, but really, for some reason, everything is completely different. The Federal Reserve is continuing to print money and increasing the dollar liquidity surplus. Bankers now have a lot of capital, they don't know what to do with it. Against this background, bankers are involved in reverse repo transactions with the Fed. Such operations are carried out only during periods of excess liquidity. If at the beginning of the year the volumes in such operations were at the level of $ 50-100 billion per day, then at the mid-August it rose to $1 trillion. So, the media and economists whip up panic and say that the Fed is going to recall liquidity, and the bankers have an excess of this liquidity.

Investment idea: buy 109.36 and take profit 109.89.

David Johnson
Analyst of «FreshForex» company
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