USDJPY – Down
USDJPY trading plan:
The FOMC cut its fed funds rate to a range of 1.5% to 1.75% from a previous range of 1.75% to 2.00%. In the accompanying monetary policy statement, the Fed said economic activity had been rising at a “moderate” rate, though it pointed to “muted inflation pressures” as one the reasons for cutting rates. The core price consumption expenditures index has remained shy of the central bank’s 2% target. Low interest rates force investors to increase long positions on corporate securities. This is a good signal for the stock market and USD JPY, which has a correlation with the shares.
Trading recommendation: Buy 108.53 and take profit 108.97.
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