The radical monetary stimulus | 30 1月 2023

30 1月 2023, USD/JPY

The radical monetary stimulus

USDJPY trading plan:

Core consumer prices in Japan's capital, a leading indicator of nationwide trends, rose 4.3% in January from a year earlier, marking the fastest annual gain in nearly 42 years and keeping the central bank under pressure to phase out economic stimulus. While the government's energy subsidies starting next month will likely moderate price gains from February, the data heightens the chance that inflation will stay well above the Bank of Japan's 2% target in coming months as companies continue to steadily pass on higher costs to households. It also comes ahead of the BOJ's crucial leadership transition, which some analysts say could install a new governor more keen to unwind its radical monetary stimulus than incumbent Haruhiko Kuroda is.

Investment idea: sell 130.50 and take profit 130.00.

David Johnson
Analyst of «FreshForex» company
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