USD / JPY is trading just above the 106.00 level as speculative interest is in wait-and-see mode ahead of Fed Powell’s speech. The United States will also present the second estimate of Q2 GDP and weekly jobless claims, says FXStreet chief analyst Valeria Bednarik.
President Powell is expected to unveil the latest overhaul of the Fed’s monetary policy framework and set the stage for a new one, based on average inflation targeting (ACI). Policymakers are likely to take a new approach that balances periods of low inflation with other periods of higher price pressure. In this scenario, it looks like the central bank will keep rates at historically low levels for a long time. “
“The United States will have a busy macroeconomic calendar as it releases the second estimate of Q2 GDP, forecast at -32.5% from -32.9%, and initial jobless claims for the week ended August 21,” 1 million views. “
USD / JPY is grappling with moving average congestion, which remains directionless. Technical indicators, meanwhile, have bounced around their midlines, heading slightly higher with limited force. ”
The pair is expected to advance beyond 106.70 to turn bullish and challenge the monthly high of 107.04.