The stark contrast | 12 апреля 2023

12 апреля 2023, USD/JPY

The stark contrast

USDJPY trading plan:

The International Monetary Fund said in its global financial stability report released that the Bank of Japan could help prevent abrupt policy changes later by allowing more flexibility in its yield curve control policy. Against the yen, the dollar was a touch higher a reflection of the stark contrast between the Fed's aggressive monetary policy tightening cycle and the Bank of Japan's ultra-loose policy. Money markets are pricing in a roughly 74% chance that the Fed will raise rates by 25 basis points next month, though multiple rate cuts are also being priced in as early as July through to the end of the year.

Investment idea: buy 133.50 and take profit 134.15.

David Johnson
Analyst of «FreshForex» company
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