USDJPY – Down
USDJPY trading plan:
Investors should stay bullish on equities ahead of this week’s US midterm elections. Polls pointing to Republicans winning at least one chamber of Congress provide a potential catalyst for lower bond yields and higher equity prices, which would be enough to keep the bear-market rally going. Americans head to the polls on Tuesday to decide control of both chambers of Congress, the governorship in 36 states, and countless other local races and ballot initiatives. A “clean sweep” by the Republicans could greatly increase the chance of fiscal spending being frozen and historically high budget deficits being reduced, fueling a rally in 10-year Treasuries that can keep the equity market rising. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.
Investment idea: buy 146.31 and take profit 147.14.
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