Federal Reserve Chairman Powell reiterated their reliance on the data and kept all options on the table regarding interest rates and the US Federal Reserve’s monetary policy after the data showed a contraction in inflation, which increases the possibility that the Federal Reserve will stop raising interest rates at the next meeting, especially since the Fed members are more inclined towards stopping. Temporarily instead of raising interest rates again.
Japanese CPI data has been on the rise recently with the core reading once again reaching its previous high and the unemployment rate surprisingly jumping to 2.7% although still near its lows.
Bank of Japan Governor Ueda at the Jackson Hole seminar reiterated that inflation is still below target and that is why they are sticking to an easy monetary policy. This was also echoed by other members of the Bank of Japan, but they are beginning to see the light at the end of the tunnel.
Technically:
On the time period chart (day), we notice that the price rebounded twice from the low of 137.00 yen and continued above the 100-day moving average while moving within the ascending channel. We expect the rise to continue towards the 147.00 resistance, which, if breached, we will witness a further rise towards the 148.15 yen levels.
