26 Agustus 2019, USD/JPY
USDJPY trading plan:
The trade war between the USA and China forces traders to increase their short positions in this currency pair. The 10-Year Treasury yield fell to 1.52%, down from 1.61% on Thursday. The spread between the 10-year note yield and the yield on the 2-year Treasury note widened to 0.13 basis points. Investors are increasing their short positions in the stock markets. This is a negative signal for USDJPY, as the currency pair has a strong correlation with the stock markets! Friday's selloff wiped out weekly gains for much of the U.S. stock market. The S&P 500 was off 1.45%.
Trading recommendation: Sell 105.80 and take profit 105.45.