USDJPY – Down
USDJPY trading plan:
Good and bad news. The bad news is the negative inflation release in the United States. The core PCE price index increased 1.6% year-on-year in May and has undershot its target this year. President Donald Trump has repeatedly the FOMC to cut rates because of low inflation. The good news is the bullish rally in the U.S. stock market. The S&P500 recorded 43 new highs and the NASDAQ recorded 70 new highs. The decline in Government bond yields has a positive effect on the value of corporate shares. This is a good signal for the stock market and USD JPY, which has a correlation with the shares.
Trading recommendation: range 107.70 -108.70.
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