The USDJPY is ticking up to new highs as yields move higher after the FOMC rate decision and comments
Overall, Powell leaned mildly hawkish — not aggressively so, but the weight of his comments tilted that way. The key tells:
The hawkish core was his refusal to commit to cuts without inflation progress, the dot plot shift toward fewer cuts, and his explicit unwillingness to prioritize employment over inflation. The fact that he openly questioned whether tariff inflation would truly be “one-time” was a notable step back from the more sanguine view the Fed held earlier.
The dovish offset came from ruling out hikes, signaling some confidence tariff inflation fades mid-year, and emphasizing that long-term expectations remain anchored — the classic “we can look through this” framing.
The wildcard is the Middle East. Powell effectively told markets he doesn’t know how to model it yet — which keeps the next meeting wide open depending on how the oil/energy situation develops.
US yields are higher with the two-year up 8.1 basis point at 3.751%. The 10 year yield is back above 4.25% at 4.2571% up 5.5 basis point
For the USDJPY it is trading at the highest level since July 2024. Targets include the natural resistance at 160.00, followed by swing high from April 2024 at 160.25. The high price from 2024 reached up to 161.919.
