USDJPY – Down
USDJPY trading plan:
China can consider further deficit spending by the central and local governments, if needed, to finance support for small businesses. To spur consumption, some local governments have issued consumption vouchers, but those steps remain inadequate due to a serious decline in fiscal revenue at all levels. China has unveiled a raft of economic support measures in recent weeks, but analysts say its official 2022 economic growth target of around 5.5% will be hard to achieve. This year, much of the support for the world’s second-biggest economy has come from fiscal stimulus to counter the impact from COVID-19. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.
Investment idea: buy 136.50 and take profit 136.99.
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