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=”https://admiralmarkets.com/analytics/traders-blog/fed-speeches-usdjpy-focus”><img style=”width:auto;” class=”img-responsive” src=”https://fxmedia.s3.amazonaws.com/articles/remote/60ca2ccc6583a4caad878cec918ffe41.png” style=”” alt=”USD economic events calendar” rel=””></a></p><p><em>Source: Economic Events February 22, 2019 – </em><a href=”https://admiralmarkets.com/analytics/forex-calendar”><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=”https://research.chicagobooth.edu/igm/events/2019-us-monetary-policy-forum” 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=”https://admiralmarkets.com/analytics/traders-blog/gold-bulls-on-fire”>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=”https://admiralmarkets.com/analytics/traders-blog/fed-speeches-usdjpy-focus”><img style=”width:auto;” class=”img-responsive” src=”https://fxmedia.s3.amazonaws.com/articles/remote/833f1ee0819e61bc62f4a7a398374010.png” style=”” alt=”USD/JPY 4 hour chart” rel=””></a></p><p><em>Source: Admiral Markets </em><a href=”https://admiralmarkets.com/trading-platforms/metatrader-5″><em>MT5</em></a><em> with </em><a href=”https://admiralmarkets.com/trading-platforms/metatrader-se”>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=”https://admiralmarkets.com/trading-platforms/metatrader-5″><a href=”https://admiralmarkets.com/analytics/traders-blog/fed-speeches-usdjpy-focus”><img style=”width:auto;” class=”img-responsive” src=”https://fxmedia.s3.amazonaws.com/articles/remote/168cc2fe72c76f7f93655c6668a66038.png” 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. 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