U.S. Treasury yields rose | 27 January 2022

27 January 2022, USD/JPY

U.S. Treasury yields rose

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.

David Johnson
Analyst of «FreshForex» company
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