12 Agustus 2020, USD/JPY
USDJPY trading plan:
The yield on 10-year U.S. debt climbed by its most in two months overnight ahead of a record $38 billion auction later on Wednesday. The move up in yields is driven by both repositioning ahead of big issuance this week and a sense that the U.S. recovery is broadening and looking more robust. The producer price index for final demand increased 0.6% last month, driven by a surge in portfolio management fees and rising costs for gasoline. That was the biggest gain since October 2018 and followed a 0.2% decline in June. This is a positive signal for USDJPY.
Trading recommendation: Buy 106.50 and take profit 106.90.