Inflation has exceeded the BOJ's projections | 28 Juli 2023

28 Juli 2023, USD/JPY

Inflation has exceeded the BOJ's projections

USDJPY trading plan:

The Bank of Japan made its yield curve control policy more flexible and loosened its defence of a long-term interest rate cap, in moves seen by investors as a prelude to an eventual shift away from massive monetary stimulus. While the central bank kept ultra-low interest rates and stressed the need to maintain monetary support, it said the tweak to yield curve control would allow it to respond "nimbly" to risks including rising inflation. Japan has been an outlier among global central banks, with the BOJ maintaining loose monetary policy even as major economies elsewhere scrambled to hose down the strongest inflation in years with aggressive interest rate hikes.

Investment idea: buy 139.40 and take profit 140.40.

David Johnson
Analyst of «FreshForex» company
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