22 November 2021, USD/JPY
USDJPY trading plan:
Japan unveiled a record 55.7 trillion yen spending package to cushion the economic blow from the COVID-19 pandemic, bucking a global trend towards withdrawing crisis-mode stimulus measures and adding strains to its already tattered finances. The massive spending would underscore the resolve of Prime Minister Fumio Kishida - once considered a fiscal conservative -to focus on reflating the economy and redistributing wealth to households. The size of spending was much bigger than the 30-40 trillion yen estimated by traders, and will be mostly funded by an extra budget of around 32 trillion yen to be compiled this year. The remainder will likely be funded by next year's budget. This is a negative signal for the Japanese yen.
Investment idea: Buy 113.99 and take profit 114.60.
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