Market Analysis: Fed members speeches on Friday – focus on USD/JPY

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  • 23.02.2019
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<p><a href=””><img style=”width:auto;” class=”img-responsive” src=”” style=”” alt=”USD economic events calendar” rel=””></a></p><p><em>Source: Economic Events February 22, 2019 – </em><a href=””><em>Admiral Markets’ Forex Calendar</em></a></p>
<p>As we approach the week’s close, many voting Fed members will give a speech at the <a href=”” target=”_blank”>US monetary policy forum</a>. After last Wednesday’s Fed minutes underlined that there was a consensus to end the reduction of the $4 trillion balance sheet by the end of the year, while many FOMC members were unsure whether any rate adjustments would be needed in 2019.</p><p>The three Fed speakers in Chicago today (Williams, Clarida, and Quarles) can be considered, among voting Fed members, particularly hawkish in their stances. Though, any hint of a looser monetary policy in their speeches could result in USD selling into the week’s close. </p><p>This seems to be especially true for USD/JPY: after the 10-year US yields recovered a little over the start of 2019. Yields reached around 2.75% and dipped lower from there, accelerating the push higher in Gold, <a href=””>now eyeing 1,360 USD/ounce</a>. While we usually would expect USD/JPY to top out against 110 given such circumstances, USD/JPY pushed up to 111.00 – so far not showing any signs of weakness. </p><p>This could likewise change in response to any dovish rhetoric from Fed members today, and a dip below 110.20 would activate the region around 109.60. Below 109.60, further losses with an initial target around 108.50 becomes likely. </p><p><a href=””><img style=”width:auto;” class=”img-responsive” src=”” style=”” alt=”USD/JPY 4 hour chart” rel=””></a></p><p><em>Source: Admiral Markets </em><a href=”″><em>MT5</em></a><em> with </em><a href=””>MT5-SE Add-on</a><em> USD/JPY 4-hour chart (between December 5, 2018 to February 21, 2019). Accessed: February 21, 2019 at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.</em></p><p>In 2014, the value of USD/JPY increased by 13.7%, in 2015, it increased by 0.5%, in 2016, it fell by 2.8%, in 2017, it fell by 3.6%, in 2018, it fell by 2.7%, meaning that after five years, it was up by 4.1%.</p><p><a href=”″><a href=””><img style=”width:auto;” class=”img-responsive” src=”” style=”” alt=”Download MetaTrader 5 and begin trading today!” rel=””></a></a></p><p><em>Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter “Analysis”) published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:</em></p><ol><li>This is a marketing communication. 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