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 Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.



Retrieved 06 Apr 2022


Retrieved 29 Sep 2022


Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.

Risk Warning: Our service includes products that are traded on margin and carry a risk of losses in excess of your deposited funds. The products may not be suitable for all investors. Please ensure that you fully understand the risks involved.

${} / ${getInstrumentData.ticker} /

Exchange: ${}

${} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}