The new monetary policy of the Bank of Japan? | 14 January 2022

14 January 2022, USD/JPY

The new monetary policy of the Bank of Japan?

USDJPY trading plan:

Bank of Japan policymakers are debating how soon they can start telegraphing an eventual interest rate hike, which could come even before inflation hits the bank's 2% target. The BOJ never committed to keep rates on hold until inflation exceeds 2%. After nine years of aggressive monetary easing, the BOJ appears to be finally getting what it wanted. Inflation is creeping up toward its elusive goal and already shifting public perceptions that deflation will persist. With the rise driven by higher raw material prices, rather than a hoped-for uptick in domestic demand, the BOJ's near-term priority is to avoid a transitory blip in inflation from fueling market speculation of an early policy tightening.

Investment idea: range 113. 40 -114.30.

David Johnson
Analyst of «FreshForex» company
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