Good and bad news | 29 Agosto 2022

29 Agosto 2022, USD/JPY

USDJPY trading plan:

Federal Reserve Chair Jerome Powell signaled the US central bank is likely to keep raising interest rates and leave them elevated for a while to stamp out inflation, and he pushed back against any idea that the Fed would soon reverse course. “Restoring price stability will likely require maintaining a restrictive policy stance for some time,” Powell said in remarks at the Kansas City Fed’s annual policy forum in Jackson Hole. This is a positive signal for the dollar. Stocks sank as Jerome Powell gave a short and clear message that rates will stay high for some time, pushing back against the idea of a Federal Reserve pivot that could complicate its war against inflation. The sell-off in the stock markets is a positive signal for the Japanese yen.

Investment idea: range 137.10 – 138.00.

David Johnson
Analyst of «FreshForex» company
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