27 January 2022, USD/JPY
USDJPY trading plan:
In its latest policy update, the Fed signaled it is likely to raise U.S. interest rates in March and reaffirmed plans to end its bond purchases that month before launching a significant reduction in its asset holdings. Powell warned that inflation remains above the Fed's long-run goal and supply chain issues may be more persistent than previously thought. The Fed also said its policy-setting members had agreed on a set of principles for shrinking its balance sheet, set to start sometime after interest hikes begin. The Fed's balance sheet roughly doubled in size during the pandemic to nearly $9 trillion, as it snapped up bonds to help keep longer-term interest rates down to support the economy.
Investment idea: buy 114.58 and take profit 115.12.