The cycle was over? | 20 Tháng Chín 2022

20 Tháng Chín 2022, USD/JPY

The cycle was over?

USDJPY trading plan:

Benchmark U.S. Treasury 10-year yields, which move inversely to prices, hit their highest level since 2011, continuing a trend that has put bonds in the midst of their worst year ever as the Federal Reserve rolls out massive rate hikes to fight surging inflation. Markets broadly expect the central bank to raise rates by another 75 basis points on Wednesday after already delivering 225 basis points in tightening this year. The more aggressive the Fed goes, the closer it brings us to a hard-landing scenario. And we know what happens in a hard landing: there's going to be a quick pivot. Past rate hiking cycles have shown that yields reached their peaks before the Fed’s final two increases, or three-to six months before the cycle was over.

Investment idea: range 143.00 -144.00

David Johnson
Analyst of «FreshForex» company
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