The turn to technical losses | 16 1月 2023

16 1月 2023, USD/JPY

The turn to technical losses

USDJPY trading plan:

The Federal Reserve said that it handed back substantially less money to the Treasury last year than it did the year before, amid rising interest expenses tied to its work to lower inflation. The Fed said in a statement that in 2021 it handed back a preliminary $58.4 billion, compared to 2021’s $107.9 billion. The Fed noted in September of last year net income turned negative and by September the central bank began recording what’s called a deferred asset that tallies up the loss, which stood at $18.8 billion at the end of the year. The turn to technical losses for the Fed is driven by the central bank’s aggressive rate rise campaign last year, which saw it raise its rate target from near zero levels to between 4.25% to 4.5% by year’s end. That sharply increased the amount of interest expenses faced by the central bank last year. This is a negative signal for the US economy.

Investment idea: sell 128.40 and take profit 127.50.

David Johnson
Analyst of «FreshForex» company
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