USDJPY – Down
USDJPY trading plan:
The Federal Reserve could scale back the pace of its interest rate hikes as soon as December, Fed Chair Jerome Powell said, while cautioning the fight against inflation was far from over and that key questions remain unanswered, including how high rates will ultimately need to rise and for how long. The market is taking this glass-half-full, it could’ve been worse approach. Powell didn’t really say anything that new. Policy continues to tighten. Traders are just not appreciating it because even if the Fed were to pause when they get to 5% you still have a balance sheet that continues to shrink. The balance sheet is almost as important if not more important than the level of rates.
Investment idea: range 135.90 – 136.80.
You may check other analytical reviews on FreshForex website. Source: freshforex.com.
