Will the USDJPY pair trend increase ?

12 févr.

News:

🔆Federal Reserve Chairman Jerome Powell, speaking before the Senate Banking Committee on Tuesday, took a more hawkish stance, describing the economy as strong with a robust labor market. He noted that while inflation was moving toward the 2% target, it remained slightly elevated, indicating that policymakers were in no hurry to cut interest rates.

🔆U.S. President Donald Trump signed executive orders imposing 25% tariffs on imported steel and aluminum, effective March 12. He also suggested the possibility of additional tariffs on automobiles, pharmaceuticals, and computer chips, pledging broader reciprocal tariffs to counter those placed on U.S. goods by other countries. This development heightened concerns over global trade tensions and posed a risk to Japan’s economy, putting pressure on the Japanese Yen while supporting the USD/JPY pair’s continued recovery.

🔆Bank of Japan Governor Kazuo Ueda reiterated earlier today that the central bank would conduct monetary policy appropriately to reach its 2% inflation target. Additionally, recent wage growth data and persistent inflationary pressures in Japan suggest the BoJ may consider another rate hike at its March meeting.

🔆Investors are now focusing on the upcoming release of U.S. consumer inflation data and Powell’s testimony before Congress, which could further influence the U.S. dollar and the USD/JPY exchange rate.

Personal Opinion:

🔆Powell’s relatively hawkish comments on Tuesday dampened expectations of a significant narrowing in the U.S.-Japan interest rate gap. This led to capital outflows from the lower-yielding Japanese Yen, though speculation that the Bank of Japan may raise interest rates again kept bearish traders cautious. Many market participants may prefer to hold off on making strong bets on USD/JPY until the release of U.S. consumer inflation data later today.

Plan:

🔆Price Zone Setup:

👉Buy USD/JPY 153.20 -153.05

❌SL: 152.60 | ✅TP: 153.70 – 154.20 – 154.8

12 févr.

Ordre annulé

Missed 10 pips to enter the trade
and missed out on +140 pips profit

unfortunately