There are plenty of reserves in the financial system | 16 March 2023

16 March 2023, USD/JPY

There are plenty of reserves in the financial system

USDJPY trading plan:

The U.S. regional banking sector remains at risk after the collapse of Silicon Valley Bank and that inflation will persist and rates would continue to rise. The U.S. central bank has raised its benchmark overnight interest rate by 450 basis points since last March from near-zero to the current 4.50%-4.75% range. Recent bank failures and the spike in financial market stress are complicating policymakers' task of reading the economic tea leaves. Some traders believe the unsettled nature of markets right now means the Fed should consider stopping the balance sheet drawdown process. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.

Investment idea: buy 132.30 and take profit 132.90.

David Johnson
Analyst of «FreshForex» company
Agree with the review?
Traders' opinion:
Close
Log in
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .
manager photo manager photo
Online-support
We will be pleased to answer any questions you may have

Write

Get bonus