Correlation with stock markets | 25 Juli 2023

25 Juli 2023, USD/JPY

Correlation with stock markets

USDJPY trading plan:

China's top leaders pledged to step up policy support for the economy amid a tortuous post-COVID recovery, focusing on boosting domestic demand, signalling more stimulus steps. The world's second-largest economy grew at a frail pace in the second quarter as demand weakened at home and abroad, raising pressure on policymakers to deliver more stimulus to shore up post-COVID recovery. China will step up economic policy adjustments, focusing on expanding domestic demand, boosting confidence and preventing risks, state news agency Xinhua cited the Politburo, a top decision-making body of the ruling Communist Party, as saying. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.

Investment idea: buy 141.19 and take profit 141.88.

David Johnson
Analyst of «FreshForex» company
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