USDJPY Analysis: FOMC To Adjust the Policy Framework

Fundamental Analysis of USDJPYUSDJPY Key Takeaways

• Powell’s speech: Federal Reserve Chairman Jerome Powell said that the monetary policy framework is being adjusted, long-term interest rates may rise, and “supply shocks” may become the new normal. After Powell’s speech, the yield on 10-year US Treasury bonds rose in the short term. Spot gold rose by $7 in 5 minutes.
• The United States still expects two interest rate cuts this year: the US PPI unexpectedly fell in April, and US retail sales barely grew in April. Traders slightly increased their bets on two interest rate cuts before the end of 2025. After the release of macroeconomic data, the US dollar index fell in the short term.

Technical Analysis of USDJPYUSDJPY Daily Chart Insights

• Stochastic oscillator: The indicator sends a short signal in the overbought area, suggesting that the short-term short force has the upper hand, and it is worth paying attention to the opportunity to short with the trend.
• MA support: After quickly breaking through the black 65-day MA, USD/JPY has been falling for three consecutive trading days. Today, the exchange rate is about to encounter resistance at the purple 13-day MA, and the exchange rate is likely to slow down the decline and even rebound.

USDJPY 2-hour Chart Analysis

• Stochastic oscillator: The fast line enters the oversold area, and the short-term exchange rate has a rebound probability. In particular, the current indicator and the exchange rate are about to form a bottom divergence pattern, so be alert to the rebound trend during the day.
• MA support: USD/JPY encounters resistance at the green 200-period MA, and the trend forms a Wolfe wave pattern. Investors need to pay attention to whether the exchange rate rises rapidly after a false downward breakthrough.

USDJPY Pivot Indicator

• According to the trading central in Ultima Markets APP, the central price of the day is established at 146.00,
• Bullish Scenario: Bullish sentiment prevails above 146.00, first target 146.45 , second target 146.90;
• Bearish Outlook: In a bearish scenario below 146.00, first target 144.70, second target 144.20.

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