When the inflationary peak will come? | 20 Tháng hai 2023

20 Tháng hai 2023, USD/JPY

When the inflationary peak will come?

USDJPY trading plan:

Japan’s inflation hit 4% for the first time in more than four decades, an outcome likely to keep speculation of a monetary policy change smoldering as prices grow at twice the pace targeted by the Bank of Japan. While the strongest price gains since 1981 are likely to keep some speculators expecting the possibility of a near-term policy pivot at the BOJ, the outcome was largely in line with expectations among economists and the central bank. The central bank released its updated price outlook after policy meeting, raising its inflation view for the current fiscal year to 3%, while keeping those for the next two years below 2%. Still, the drawn-out price hikes add to concerns that the central bank may have underestimated the strength of inflationary momentum, a factor that invites speculation it may reconsider its policy direction down the line.

Investment idea: sell 134.30 and take profit 133.65.

David Johnson
Analyst of «FreshForex» company
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