The bullish rally in the US stock market | 23 Oktober 2020

23 Oktober 2020, USD/JPY

USDJPY trading plan:

We are expecting a bullish rally in the US stock market, which will have a positive impact on the value of USDJPY, as assets are correlated with each other. Investors are also keeping an eye on negotiations between House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin over the potential for a new substantive covid-19 relief bill, with Pelosi expressing optimism that a consensus could be reached. Assets on the balance sheet of the US Federal Reserve reached a new all-time high of $ 7.17 trillion. The growth of assets is primarily due to purchases of treasury and mortgage bonds. Today the US Federal Reserve will conduct operations in the market, within which it will buy treasury bonds in the amount of $ 8.82 billion. This is a positive signal for the stock market!

Trading recommendation: Buy 104.47 and take profit 104.85.

David Johnson
Analyst of «FreshForex» company
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