Classic recession signal | 15 Agustus 2019

15 Agustus 2019, USD/JPY

Classic recession signal

USDJPY trading plan:

The storm in the stock markets of the planet has a negative impact on the value of USDJPY. The U.S. Treasury yield curve temporarily inverted on Wednesday for the first time since February 2006 - metric widely viewed as a classic recession signal. The U.S. curve has inverted before every recession in the past 50 years. The inversion - where shorter-dated borrowing costs are higher than longer ones - saw U.S. 2-year note yields rise above the benchmark 10-year yield, which fell to 1.56%. U.S. 30-year yields also plunged, dropping to a record low of 1.995%.

Trading recommendation: Sell 106.15 and take profit 105.72.

David Johnson
Analyst of «FreshForex» company
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