USDJPY – Down
USDJPY trading plan:
The U.S. trade deficit contracted by the most in nearly 14 years in November as slowing domestic demand amid higher borrowing costs depressed imports. The trade deficit decreased 21.0% to $61.5 billion, the lowest level since September 2020, the Commerce Department said. Imports tumbled 6.4% to $313.4 billion, with goods dropping 7.5% to $254.9 billion. Consumer goods imports were the lowest since December 2020. The Federal Reserve last year hiked its policy rate by 425 basis points from near zero to a 4.25%-4.50% range, the highest since late 2007. Last month, it projected at least an additional 75 basis points of increases in borrowing costs by the end of 2023. The higher rates have boosted the dollar, which gained 5.4% against the currencies of the United States‘ main trade partners last year.
Investment idea: buy 132.66 and take profit 133.45.
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