The squeezing profits | 27 Tháng Năm 2022

27 Tháng Năm 2022, USD/JPY

USDJPY trading plan:

High insulation in the United States is squeezing profits. That was confirmed by a separate report from the Commerce Department, showing corporate profits from current production fell at a $66.4 billion, or 2.3% rate, in the first quarter, the first drop in nearly two years. The decline was across financial and non-financial corporations as well as overseas operations. After tax profits dropped at a 4.3% rate after rising at only a 0.2% peace in the fourth quarter. The Federal Reserve has raised its policy interest rate by 75 basis points since March. The U.S. central bank is expected to hike the overnight rate by half a percentage point at each of its next meetings in June and July. There are worries that the Fed's aggressive monetary policy posture could push the economy into recession next year. The housing market is already showing signs of slowing. This is a bad signal for the stock market and USDJPY, which has a correlation with the shares.

Investment idea: sell 127.20 and take profit 126.50.

David Johnson
Analyst of «FreshForex» company
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