BOJ has executed brilliantly | 21 12月 2022

21 12月 2022, USD/JPY

USDJPY trading plan:

There has long been speculation among traders about whether an eventual shift by the BOJ away from its longstanding policy of ultra-low rates — the last major central bank yet to do so — might remove a key anchor from global bond markets, turbocharging the liftoff that’s been driven by the Federal Reserve, the European Central Bank and others. This move by the BOJ, of course, is not an abandonment of near-zero policy, it is a tweak to its yield-curve control mechanism that allows market rates on bonds to move a bit higher. Its primary policy benchmark remains stuck at minus 0.1% and while the range of permitted fluctuation for the 10-year yield is bigger, it’s still officially aiming to keep that around zero too. But it is seen, by some, as a signal of the path toward unwinding, so the reaction of markets is instructive.

Investment idea: range 131.50 -132.90

David Johnson
Analyst of «FreshForex» company
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