The hawkish message | 13 October 2022

13 October 2022, USD/JPY

USDJPY trading plan:

Federal Reserve policymakers agreed they needed to move to a more restrictive policy stance - and then maintain that for some time - in order to meet the U.S. central bank's goal of lowering inflation, a readout of last month's two-day meeting showed. September FOMC meeting minutes reinforced the overall hawkish message delivered via the statement, the dot plot and the Chair’s press conference. The Fed wants tighter domestic financial conditions in order to combat persistently high levels of inflation and is determined to achieve that outcome. Broadly speaking, markets have adjusted to this reality, and various measures of financial conditions have reached new highs in terms of restrictiveness.

Investment idea: buy 146.60 and take profit 147.05.

David Johnson
Analyst of «FreshForex» company
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