Bank of Japan continues Quantitative Easing under Ueda

15 ביוני 2023

GBPJPY
April 10 ~ Present

Fundamental Analysis:
Kazao Ueda, the new governor of the Bank of Japan has decided to continue QE and Yield Curve Control, whereas other central banks in the G7 have decided to adopt Quantitative Tightening in order to curb high inflation.
The Yen will depreciate as a result until the BoJ makes a change to help it's currency stabilize and possibly gain against other economies.
The BoE has been grappling with sticky inflation and a good labor market despite recent interest rate hikes. As a result The BoE has committed to continue raising rates in order to curb inflation and get the economy stable again.
BoE: Hawkish
BoJ: Dovish

Market Sentiment:
Investors and major institutions will proceed to go long on the Pound and Short the yen over the medium-to-long term or a solution evolves.
Fundamental Idea: Long GBP/JPY
Technical method: Swing trade until price reaches Daily/Weekly key levels, and then exit and re-enter to the next D1/W1 level etc.

Trades:
9 wins
2 losses
4481 pips