USDJPY – Down
USDJPY trading plan:
Unless congressional agreement is reached, Treasury will run out of cash sometime around June-October, roughly when or just after rates are expected to reach the peak of the most aggressive hiking cycle in 40 years. Congressional brinkmanship over sovereign default is all too common. According to the Treasury, Congress has acted 78 times to permanently raise, temporarily extend, or revise the definition of the debt limit since 1960. What is rare is having that uncertainty coincide with the Federal Reserve cranking up interest rates. The current situation could not be further removed from the last time debt ceiling episodes really spooked markets in 2011 and 2013.
Investment idea: buy 134.29 and take profit 135.00.
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