{"id":109664,"date":"2024-12-19T02:14:01","date_gmt":"2024-12-18T22:14:01","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=109664"},"modified":"2024-12-19T02:29:36","modified_gmt":"2024-12-18T22:29:36","slug":"hawkish-fed-rhetoric-boosts-usd-jpy-pair","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/hawkish-fed-rhetoric-boosts-usd-jpy-pair\/12\/19\/market-updates\/","title":{"rendered":"Hawkish Fed Rhetoric Boosts USD\/JPY"},"content":{"rendered":"The Federal Reserve&#8217;s decision to cut its benchmark interest rate by 25 basis points to a target range of 4.25% &#8211; 4.50% sent shockwaves through the financial markets. While the rate cut was widely anticipated, the Fed&#8217;s surprisingly hawkish outlook for the future path of interest rates fueled a rally in the US dollar, particularly against the Japanese yen.<br \/><br \/>The Fed&#8217;s statement struck a balance between acknowledging recent economic softening and maintaining a vigilant stance on inflation. While the central bank recognized the easing of labor market conditions, it emphasized the persistence of elevated price pressures. The FOMC&#8217;s commitment to achieving its dual mandate of price stability and maximum employment remains unwavering.<br \/><br \/>The Fed&#8217;s updated economic projections reflect a slightly more optimistic view of the economy. The central bank now forecasts a higher terminal rate of 3.9% for 2025, up from the previous estimate of 3.4%. Moreover, the projected rate for 2026 has also been revised upward to 3.4%. This hawkish pivot suggests that the Fed is prepared to keep interest rates elevated for an extended period to ensure that inflation is brought under control.<br \/><br \/>The USD\/JPY pair has surged in response to the Fed&#8217;s rate cut and hawkish stance. The pair&#8217;s technical indicators, such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), point to a strong bullish momentum. Key resistance levels at 154.50, 155.00, and 156.00 could be tested as the dollar continues to strengthen.<br \/><br \/>As the global economic landscape remains uncertain, investors will closely monitor the Fed&#8217;s future policy decisions. The central bank&#8217;s ability to navigate the delicate balance between taming inflation and supporting economic growth will be crucial in determining the future trajectory of interest rates and the US dollar.<br \/>","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve&#8217;s decision to cut its benchmark interest rate by 25 basis points to a target range of 4.25% &#8211; 4.50% sent shockwaves through the financial markets. While the rate cut was widely anticipated, the Fed&#8217;s surprisingly hawkish outlook for the future path of interest rates fueled a rally in the US dollar, particularly &hellip;<\/p>\n","protected":false},"author":13,"featured_media":108095,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[6885,7201],"class_list":["post-109664","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-fed","tag-usd-jpy"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109664","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=109664"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109664\/revisions"}],"predecessor-version":[{"id":109669,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109664\/revisions\/109669"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/108095"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=109664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=109664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=109664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}