The USDJPY is moving lower as fed Chair Powell Q&A testimony begins | Forexlive
The USDJPY is moving to new lows as the question and answer session on Capitol Hill begins. Fed chair Powell said that he could see inflation, and not as strong as expected and that if that was a case that would suggest cutting sooner. He also said that many paths are possible when questioned about the possibility of a July rate cut.
Compared to his commentary after the FOMC rate decision last week, that statement is a bit more dovish and at least suggests a willingness to acknowledge the commentary from the likes of FOMC members Bowman, Waller and Goolsbee who have been more dovish over the last few days.
Technically, the USDJPY has moved below the 50% midpoint of the move up from the end of May low to the June high. That level comes in at 145.06. The rising 200 hour moving averages just below that level.
On the downside the 61.8% retracement at 144.364 is the next key target.
Sellers are making a play. Can the momentum continue? I talk about it in the above video.
USDJPY technicals
Meanwhile, US stocks remain supported with the NASDAQ index leading the way with a gain of 225 points or 1.15%. The S&P index is up 50 points or 0.83%. While the Dow industrial average is trading up 0.80%.
Both the S&P and the NASDAQ indices closed above their 100 hour moving averages yesterday and are seeing increase momentum away from those moving averages.
- For the S&P index, the 100 hour moving average is at 6002.77. The current price is trading at 6076.54.
- For the NASDAQ index the 100 hour moving averages at 19562.38. The current price is trading at 19865.
Looking at the US yield curve, the two year yield is unchanged at 3.829%, while the 10 year is currently down -0.8 basis points at 4.314%.
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