Fed is trying to catch up | 16 June 2022

16 June 2022, USD/JPY

Fed is trying to catch up

USDJPY trading plan:

The U.S. central bank raised its policy interest rate by three-quarters of a percentage point, the biggest hike since 1994. At this point the Fed is trying to catch up without upsetting markets too much. The Fed will need to see a sustained period of weakness in domestic demand and likely labor markets before breathing a sigh of relief on the inflation front. The Fed is in a very difficult position that frankly, they put themselves in by mishandling monetary policy and allowing inflation to rise as much as it has. There's just simply no sign that inflation is turning and this is happening at a time when some of the economic data is weaking.

Investment idea: buy 133.45 and take profit 134.00.

David Johnson
Analyst of «FreshForex» company
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