Further growth of USDJPY
1. U.S. dollar
Most Fed officials agree that further tightening is needed to curb price pressures.
The statement strongly signals that the committee will resume hikes as early as July. Powell said at his press conference that the vast majority of FOMC members expect additional tightening. Everyone agreed.
Powell repeatedly emphasized lower inflation and noted that Fed officials and individual economists were surprised at how long inflation has remained high. The FOMC has increased its forecast on economic growth and the labor market but now expects unemployment to rise to 4.5% next year. Nevertheless, the U.S. economy still has a way to make a soft landing.
2. Japanese yen
As noted in the last forecast, the Bank of Japan policy remains soft over the medium term.
Both conditions create heavy pressure, which pushes the U.S. dollar higher against the Japanese currency.
The growth target is the price zone at 150.0.
In case the direction of price movement diverges from the forecast, fix the loss at the 135.0.