- Powell’s hawkish tone on inflation and rate hikes sends USD/JPY whipsawing, eyeing a test of the year-to-date high of 146.56.
- Despite signs of disinflation, Powell insists there’s still a “long road ahead” to reach the Fed’s 2% target, adding uncertainty to the market.
- Powell cites above-trend growth and a tight labor market as potential catalysts for further hikes in the Federal Funds Rate, keeping traders on their toes.
USD/JPY rallies after remaining within familiar ranges in a choppy trading session before the US Federal Reserve Chair Jerome Powell hit the stand and delivered hawkish remarks, putting into the table additional tightening. The USD/JPY is whipsawing around 145.70-146.50 as it eyes a test of the year-to-date (YTD) high of 146.56.
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