20 Juli 2021, USD/JPY
USDJPY trading plan:
China kept its benchmark lending rate for corporate and household loans unchanged at its monthly fixing. The one-year loan prime rate was kept at 3.85%. The five-year LPR remained at 4.65%. The rate was unchanged for the 15th straight month. The People’s Bank of China lowered the amount of cash that banks must hold as reserves, releasing around 1 trillion yuan in long-term liquidity to underpin its post-COVID economic recovery that was starting to lose momentum. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.
Investment idea: buy 109.32 and take profit 109.92.