The BoJ offered to pump a combined $97 billion | 14 December 2021

14 December 2021, USD/JPY

The BoJ offered to pump a combined $97 billion

USDJPY trading plan:

The Bank of Japan offered to pump a combined $97 billion into markets through temporary government bond purchases in a two-day effort to counter a rise in short-term interest rates. The central bank made two offers, including one to buy bonds worth 2 trillion yen ($17.6 billion) for immediate fund provision. Under another offer, it would buy 7 trillion yen to inject funds for a period between Dec. 15-16. Both offers have arrangements to sell the bonds back. Including an offer to inject 2 trillion yen made on Monday, the central bank offered to inject a combined 11 trillion yen in the first such operation conducted in nearly two years. This is a negative signal for the Japanese yen.

Investment idea: buy 113.53 and take profit 114.05.

David Johnson
Analyst of «FreshForex» company
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