USDJPY – Down
USDJPY trading plan:
The U.S. regional banking sector remains at risk after the collapse of Silicon Valley Bank and that inflation will persist and rates would continue to rise. The U.S. central bank has raised its benchmark overnight interest rate by 450 basis points since last March from near-zero to the current 4.50%-4.75% range. Recent bank failures and the spike in financial market stress are complicating policymakers‘ task of reading the economic tea leaves. Some traders believe the unsettled nature of markets right now means the Fed should consider stopping the balance sheet drawdown process. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.
Investment idea: buy 132.30 and take profit 132.90.
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