USDJPY – Down
USDJPY trading plan:
Japan’s real wages fell the most in nearly nine years in January, official data showed, as four-decade-high inflation squeezed the purchasing power of consumers and undercut efforts by policymakers to revive a COVID-ravaged economy. Wage trends in the world’s third-largest economy are under close market scrutiny because Bank of Japan officials have said that pay hikes, combined with 2% inflation, are essential to it scaling back its loose monetary policy. Given that wage hikes are gathering momentum towards the annual labour negotiations this month, the Bank of Japan will come under pressure to tweak its yield curve control as early as this week. Even if it stands pat, it will stay under pressure.
Investment idea: buy 135.45 and take profit 136.14.
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