The bullish rally on the U.S. stock market | 13 1月 2020

13 1月 2020, USD/JPY

USDJPY trading plan:

We expect a bullish rally on the U.S. stock market which will have a positive impact on the value of USDJPY. Treasuries pushed higher as the wage figures erased any inflation worries. Futures investors maintained the amount of easing they expect from the Federal Reserve. The yield on 10-year Treasuries fell three basis points to 1.82%. It is now widely accepted that structural change to the U.S. and world economies has altered the traditional relationship between unemployment and inflation: it is no longer clear that jobless rates below a certain level lead to higher prices. The change has also mired both inflation and interest rates at what may be permanently low levels. This is a positive signal for the U.S. stock market!

Trading recommendation: Buy 109.50 and take profit 109.88.

David Johnson
Analyst of «FreshForex» company
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