USD/JPY Runs its 4th Straight Profitable Day as Markets Await Fed’s Minutes
USD/JPY Analysis
Hawkish comments by Fed's Ms Brainard yesterday, boosted the Dollar as sent US Bond Yields higher, to which the pair is sensitive. Ms Brainard talked of "stronger action" on rates if this is warranted by the inflation data, noting that bringing inflation down is of "paramount importance". She also sees aggressive reduction of the balance sheet, which could begin as early as the upcoming meeting in May. [1]
Investors will have more opportunities to get some more insights into the officials' thinking, starting today with the release of the minutes from the March policy meeting (18:00 GMT), while a series of Fed speakers are on tap tomorrow – including prominent hawk and voter Mr Bullard.
Markets also grapple with the prospect of further US sanctions against Russia, while the European commission proposed yesterday a fifth package of restrictions that includes a ban on coal imports, but no oil embargo. [2]
These factors help the pair into its fourth straight profitable day, following a shallow correction after the nearly seven year highs (125.11) last week. The slide stopped ahead of 38.2% Fibonacci of the 2022 Low/High rise, which reinforces chances for a higher high, although fresh impetus will likely be required for moves beyond 125.86.
Another pullback towards mid-122.00s before that, would definitely not be surprising, but a test of 120.66 does not seem easy under these conditions and the area until the EMA200 (119.40-30) seems well protected.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 06 Apr 2022 https://www.federalreserve.gov/newsevents/speech/brainard20220405a.htm | |
| Retrieved 09 May 2026 https://ec.europa.eu/commission/presscorner/detail/en/STATEMENT_22_2281 |
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