Will Powell Drive USDJPY Breakout?

USDJPY Testing HighsUSDJPY is pushing higher today ahead of keenly awaited comments from Fed chairman Powell. Giving the introductory speech yesterday at a Research and Statistics conference, traders were left empty handed with no mention of the economy or monetary policy. Today, however, the market is braced for more topical commentary from Powell with the Fed chief’s outlook on Fed monetary policy the key focus.Powell on WatchIt's been a tricky time for USD in recent weeks. The drop in October employment data made a strong case against further tightening before year end, leading USD lower. However, subsequent hawkish remarks from some Fed members have kept bulls’ USD dream alive. Traders will now be keen to hear how Powell feels about the prospect of further tightening, particularly against the recent drop in US yields, which creates more scope for the bank to hike again.BOJ To Maintain EasingIf Powell’s comments today are seen as hawkish, USDJPY is a good candidate for longs. Speaking earlier today, BOJ governor Ueda warned that the bank would maintain its policy of negative rates and yield curve control until inflation is sustainably at the bank’s 2% target, keeping pressure on JPY for now.Technical ViewsUSDJPYThe rally in USDJPY has stalled for now into the 151.81 2022 highs. However, with dips finding solid demand the focus remains on further upside and an eventual breakout towards the October ,87 highs around 153.63. To the downside, if we correct lower, 148.98 is the next support ahead of 145 which is the main support to note. Notably, we have a buy signal in the Signal Centre today set below market at 150.50 suggesting a preference to buy dips from current levels.