USDJPY – Down
USDJPY trading plan:
The Bank of Japan kept ultra-low interest rates on Friday but announced a plan to review its past monetary policy moves, laying the groundwork for new Governor Kazuo Ueda to gradually phase out his predecessor’s massive stimulus programme. In a news conference, the new chief said the broad-based review won’t be tied to near-term policy shifts and stressed the need to wait for more evidence to conclude inflation would sustainably achieve the BOJ’s 2% target. „The risk of missing our price target with premature monetary tightening is bigger than the risk of experiencing inflation exceeding 2% due to a delayed tightening. The cost of waiting for trend inflation to heighten is low,“ Kazuo Ueda said. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.
Investment idea: buy 136.40 and take profit 137.15.
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