It’s not a good time for the BOJ | 19 Tháng sáu 2023

19 Tháng sáu 2023, USD/JPY

It’s not a good time for the BOJ

USDJPY trading plan:

The yen plunged after the Bank of Japan kept its ultra-low interest rate policy and forecast that inflation will slow later this year. As widely expected, the BOJ maintained its -0.1% short-term rate target and a 0% cap on the 10-year bond yield set under its yield curve control policy. The Bank of Japan added fuel fire by being on hold again. Bank of Japan Governor Kazuo Ueda continued to defy global central bank trends by sticking with stimulus as he waits for signs of more sustainable inflation while his peers signal the need to raise interest rates further to rein in prices. Last autumn Japan spent around $65 billion stepping into currency markets to prop up the yen when it approached the 146 and 152 levels against the dollar. Officials have already issued warnings over rapid moves in the currency but levels and movement still look some distance from triggering a response.

Investment idea: buy 141.48 and take profit 142.19.

David Johnson
Analyst of «FreshForex» company
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