Correlation between USDJPY and stock markets | 12 April 2022

12 April 2022, USD/JPY

Correlation between USDJPY and stock markets

USDJPY trading plan:

The Federal Reserve is expected to deliver two back-to-back half-point interest rate hikes in May and June to tackle runaway inflation. A strong majority, or 85 of 102 economists, forecast 50 basis points in May, and a still-solid majority of 56 said the Fed would follow up with 50 basis points as well in June. While the central bank, chaired by Jerome Powell, is likely to gear down to quarter-point moves in the second half of this year, the federal funds rate is now expected to end 2022 at 2.00%-2.25%, 50 basis points higher than the median forecast in a poll taken last month. This is a bad signal for the stock market and USDJPY, which has a correlation with the shares.

Investment idea: sell 125.75 and take profit 124.90.

David Johnson
Analyst of «FreshForex» company
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