USDJPY – Down
USDJPY trading plan:
China’s central bank made a „timely“ move by pumping liquidity into the banking system to respond to rising pressures in the domestic banking industry and growing risks abroad. The central bank reduced the amount of cash banks must hold as reserves for the first time this year to support a nascent recovery in the world’s second-biggest economy. The cut in the reserve ratio came earlier than financial markets had anticipated. With the domestic banking industry’s debt repayment costs under pressure and the net interest margin continuing to narrow to historical lows, the central bank made a timely move to lower the reserve requirement ratio to release long-term liquidity to the financial system. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.
Investment idea: buy 130.00 and take profit 131.00.
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