Price falls initially
The USDJPY has moved lower as Powell signals the Fed will target average inflation rate although they have not set any time for that average.
Technically, the price has moved down to test the 200 hour MA and rising trend line at 105.87 area. The 200hour MA is at 105.905. A break below those levels will open up the downside. So far those levels are holding.
On the topside, getting above 106.216 would be a step in a more bullish tilt. Above that the 106.4082 and 106.465 area and high for the week at 106.56 would be upside targets.
The initial biases to the downside for the USDJPY.
At the start of his speech, the stock futures implied:
- S&P index -1.23 points
- Dow industrial average -5.92 points
- NASDAQ index -7.44 points
currently, stocks have moved a bit higher:
- S&P index up 4 points
- Dow up 66 points
- NASDAQ index up 4 points
The opening should be volatile at the bottom of the hour