Correlation between USDJPY and the U.S. stock market | 27 tháng Tám 2021

27 tháng Tám 2021, USD/JPY

Correlation between USDJPY and the U.S. stock market

USDJPY trading plan:

U.S. corporate profits surged to a fresh record high in the second quarter, boosted by robust demand and higher prices. Profits from current production increased by $234.5 billion, or at a 9.2% quarterly rate, to a record $2.8 trillion, after rising at a 5.1% pace in the first quarter. They were driven by a $169.8 billion surge in profits at domestic nonfinancial corporations. There were also gains in domestic financial corporation’s profits as well as rest-of-the-world profits. Pre-tax profits as a share of GDP, a proxy for economy-wide profit margins, rose 0.7 percentage points to 12.3%, their highest since 2014. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.

Investment idea: buy 109.85 and take profit 110.25.

David Johnson
Analyst of «FreshForex» company
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