Profit taking on the stock market and buy USD/JPY
Janet Yellen messed up the markets a bit. In my opinion, what happened yesterday (the sell-off) was only profit taking for fear of a change in monetary policy. The yields of US bonds, which strongly depend on gold prices and the value of the USD, went up strongly. If there is a prospect of an interest rate hike on the horizon, investors are shedding old bonds (the price falls, so yields rise) in favor of new debt securities that will be worth more (higher interest rates affect the return on bonds; the higher they are, the more % is generated investing in bonds).
I expect a strong rebound today. Due to high yields, my trade will focus today on the USD / JPY pair, on which the dollar should fundamentally gain a bit. The first position on BUY is already taken, the target to reach is 109.693.
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