USDJPY – Down
USDJPY trading plan:
Japan’s economic output ran below full capacity for the 11th straight quarter in October-December, central bank fresh data showed, suggesting that conditions for ending ultra-low interest rates have yet to fall into place. A negative output gap occurs when actual output is less than the economy’s full capacity, and is considered a sign of weak demand that typically puts downward pressure on inflation. The output gap data is among factors the BOJ scrutinises in gauging whether economic growth and domestic demand are strong enough for Japan to sustainably hit its 2% inflation target.
Investment idea: buy 131.11 and take profit 132.00.
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