USDJPY – Down
USDJPY trading plan:
San Francisco Federal Reserve Bank President Mary Daly said the 5.1% policy rate that most Fed policymakers thought as of December would ultimately be needed is a „good indicator“ for where policy is going, but the central bank could take rates even higher. „I’m prepared to do more than that, if more is needed,“ Daly told. Daly said she expects it will take longer than just this year to win the war on high inflation. As of December, inflation by the Fed’s preferred gauge was 5%. „We really will have to be in a restrictive stance of policy until we truly understand and believe that inflation will come squarely back down to our 2% target,“ she said, adding that Fed policymakers are „resolute and united“ in doing so. This is a positive signal for the dollar.
Investment idea: buy 131.05 and take profit 131.92.
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