13 Juli 2023, USD/JPY
USDJPY trading plan:
As U.S. inflation cools and growth remains resilient, bullish investors are counting on the upcoming earnings season to provide more fuel for a rally that has taken stocks to their highest levels in months. Wednesday’s closely-watched inflation report showed consumer prices increasing in June at their slowest annual pace since March 2021, stoking hopes that the Federal Reserve will soon end its monetary policy tightening. Combined with a resilient labor market, the benign inflation data bolsters the hopes of those betting the economy is facing a so-called Goldilocks scenario of cooling inflation and steady growth that is seen as a positive backdrop for the rally in stocks. The S&P 500 is up 16.5% year-to-date and on stands at its highest level since April 2022. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.
Investment idea: buy 138.35 and take profit 138.95.