USDJPY trading plan:
The BoJ must contend with an incoming new prime minister, likely Yoshihide Suga, who recently called for the bank to work with the government, saying he didn’t buy arguments about negative rates hitting bank profits. This is a negative signal for the yen. The COVID-19 pandemic has pushed the U.S. federal budget deficit above $3 trillion for the first 11 months of fiscal 2020. The $3.007 trillion year-to-date deficit was nearly triple the $1.067 trillion deficit for the comparable year-ago period, spurred by a massive increase in government spending to battle the economic fallout from the pandemic. This is a negative signal for the dollar.
Trading recommendation: range 105.75 -106.45.
Origin: FreshForex
