February 01, 2023 21:42 GMT
Yen Firms After Powell Acknowledges Disinflation
JPY
USD/JPY prints at ¥128.95, the pair was down ~1% in yesterday's trading.
- Yen was initially offered in the immediate aftermath of the Fed rate decision, as they rose rates by the expected 25 bps, after breaking below its 20-day EMA in the European session.
- Fed Chair Powell acknowledged in his press conference that "disinflation process has started", and he didn't push back on the recent easing of financial conditions.
- This saw the JPY rally, USD/JPY fell 1% in volatile trade. Support was seen ahead of ¥128.50 before paring losses to deal at current levels.
- Technically we remain in a downtrend. The price has held below Jan 18 high at ¥131.58, and is below 20-day EMA at ¥130.57. The bear trigger is at ¥127.23, the Jan 16 low, from here bears can target 126.81 a Fibonacci projection.
- On the wires today we have Weekly Intl Security Flow and Jan Monetary base as well as the latest 10 year JGB supply.
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