Negative macroeconomic statistics from Japan | 22 May 2023

USDJPY trading plan:

Japan's core consumer inflation stayed well above the central bank's 2% target in April and a key index stripping away the effects of fuel hit a fresh four-decade high, keeping alive expectations of a tweak to its massive stimulus this year. An index stripping away the effects of both fresh food and fuel - closely watched by the BOJ as a key barometer of domestic demand-driven price trends - rose 4.1% in April from a year earlier, marking the fastest annual pace since September 1981. The BOJ will likely have little choice but to revise up its inflation forecast. The BOJ next meets for a policy meeting on June 15-16. It will revise its growth and inflation estimates at a subsequent meeting on July 27-28.

Investment idea: buy 137.49 and take profit 138.40.