Trade Idea (2020-11-16) USDJPY broke 105

Trade Idea

Good morning.

US stocks were a big rebound last Friday. Despite the record high number of new cases in the United States, expectations for vaccine development have boosted DJIA by more than $ 400 temporally.

In foreign exchange market, JPY and GBP were bought. USDJPY broke 105 level, which had been holding up until the day before, and the 20-day moving average also broke, ending at 104.64.

EURUSD is relatively strong, ending with a gradual rise to 1.1835. The ECB’s additional easing in December is expected to be certain, and the situation of trade negotiations with UK is holding down the upside, but the 20-day moving average is firmly maintained and the upward trend continues.

GBPUSD, which had been sold until the previous day, have been repurchased more and ended at 1.3195. When a vaccine is developed, UK economy is said to benefit the most over other major countries. On the other hand, there are still concerns about the cracks in the Johnson administration and the impact on trade negotiations with EU.

EURUSD H1 (Please click the chart to enlarge.)

Market Environment

Yesterday’s currency strength

US market yesterday

DJIA: 29,479.81 (+399.64, +1.37%)
NASDAQ: 11,829.29 (+119.7, +1.02%)
S&P 500: 3,585.15 (+48.14, +1.36%)
GOLD: 1,888.2 (+14.9)
OIL: 40.12 (-1)
US 10-YR: 0.898 (+0.012)
VIX: 23.1 (-2.25)

Asian market today

Nikkei: 25,760~ (+374)
CME Dow future: 29,634~(+154 Dow)

Economic indicators in this week

GMT 23:50(CH)GDP3Q
GMT 02:00(CH)Retail sales
GMT  13:30(US)FRB NY mfg index