$USDJPY is finding buyers on the dips. Will you start trading?
The Friday morning session features Jerome Powell giving a speech at 10 AM Eastern Standard Time, meaning that the world is going to listen to determine whether the Federal Reserve is going to become extraordinarily hawkish, or if they are going to pivot. Wall Street has gotten into its head that the Federal Reserve is going to pivot, but quite frankly they have said multiple times since then that the markets have misread the central bank. In other words, we are playing a game of chicken.
As long that’s going to be the case, it’s difficult to imagine a scenario where this pair does anything different unless the Bank of Japan finally gives up its quantitative easing, something that it is not going to do anytime soon. The trend should remain, but the next 24 hours might be a bit quiet as we wait for some type of confirmation. With this being the case, the trend should continue to be followed.