💹🔻 Keeping Our USD/JPY Short, Target 129.0: MUFG Strategy
- Rosbel Durán
- Mar 19, 2023
- 1 min read
We are maintaining a short USD/JPY trade idea. The JPY has been one of the main beneficiaries so far from the loss of confidence in the health of the banking system. While policymakers have taken steps over the past week to address those concerns, it is not yet clear that they are sufficient on their own to quickly restore investor confidence.
A decision to delay further hikes until confidence returns in the banking sector could open the door to further downside for USD/JPY in the week ahead.
The results revealed that Japanese labour unions secured stronger wage agreements for the coming fiscal year. Overall wages are expected to increase by 3.8% and base wages by 2.07%. It is the strongest wage agreements reached since 1993 and could encourage the BoJ to shift away from looser policy in the year ahead.
Entry @134.70, Stop Loss @138.50, Target @129.0
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