Such fine-tuning alone | 17 Tháng bảy 2023

17 Tháng bảy 2023, USD/JPY

Such fine-tuning alone

USDJPY trading plan:

The Bank of Japan is caught in a dilemma with growing prospects of sustained inflation heightening the case for an early tweak to its yield control policy, despite Governor Kazuo Ueda's reassurances he would "patiently" maintain massive stimulus. The first test will come at the central bank's policy meeting on July 27-28, when the board is likely to revise up its inflation forecasts and signal its conviction that a demand-driven rise in prices backed by wage growth is taking hold. The BOJ has been internally discussing the idea of tweaking yield curve control as early as this month, though the talks are preliminary and no final decision has been made, said two sources familiar with its thinking.

Investment idea: buy 138.25 and take profit 139.05.

David Johnson
Analyst of «FreshForex» company
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