USDJPY moves higher ahead of FOMC meeting minutes

<figure data-media-><img src="https://images.forexlive.com/images/USDJPY_id_3a9f32e9-b590-40fc-97ca-ea436b6c174b_original.jpg" wrapper-="wrapper-" data-src="https://images.forexlive.com/images/USDJPY_id_3a9f32e9-b590-40fc-97ca-ea436b6c174b_original.jpg" /></figure><p><br></p><p>The USDJPY is&nbsp;moving higher as the&nbsp;clock ticks toward the FOMC meeting minutes scheduled for release at the top of the hour.</p><p>Looking at the daily chart for the USDJPY, the price has now moved above the low price from yesterday which was near the low price from the&nbsp;October 10 at 148.15. The current price trades at 148.32. The prices also approaching the closing level from yesterday at 148.38. A move above that level and close above that level would snap the 3 day down the street for the USDJPY.&nbsp; That decline took the price of the USDJPY from a high on Friday at 151.429, to a low today of 147.143 or 428 pips. That is not a bad move for a 4 day period.&nbsp;</p><p>Helping the move to the upside is a rebound in the US yields. The longer end is seeing the biggest rebound . </p><ul><li>The 10 year yield is trading at 4.439% up 1.7 basis points. At yield lows today, the 10 year yield was down -5.4 basis points. </li><li>The thirty-year yield is up 3.2 basis points at 4.605%. At yield lows, the thirty-year yield was down -6.5 basis points on the day.</li></ul><p><span>The November FOMC minutes are seen as a bit behind the curve since they will not reflect recent CPI data that indicated softer inflation and labor market conditions. That data, has led to traders reducing bets on future rate hikes and anticipating potential rate cuts in 2024. </span></p><p><span>Despite this, Fed Chair Powell maintained a hawkish stance in a speech following the FOMC meeting, emphasizing that significant progress on inflation is yet to be achieved and that the Fed is prepared to tighten policy further if necessary. The FOMC's November meeting left rates unchanged, with slight modifications in its statement indicating a strong economy but acknowledging moderated job gains and the impact of tighter financial conditions. </span></p><p><span>Powell reiterated the Fed's commitment to restrictive monetary policy, acknowledging the economy's strength and persistent high inflation. However, he also acknowledged uncertainties, hinting at the nearing end of the rate-hike cycle, while clarifying that rate cuts are not currently being considered.</span></p>

This article was written by Greg Michalowski at www.forexlive.com.