USD / JPY Short on Dovish Powell

USD / JPY shorts in play

Jerome Powell surprised the markets with a more accommodating speech and did not talk about a future "progressive rate-hiking path for next year". The US dollar quickly fell as a result of the speech and the S & P500 gained 40 points after Powell's speech .. Trump will be delighted.

Powell said that he had no pre-established policy and that it would depend on economic data and that rates were just below the neutral beach. This means that after a probable rate hike in December, the Fed would be ready to pause in 2019 to assess its necessary level of increase.. With the decline in oil, many analysts expect inflationary pressures to be reduced, which would less prompt the Fed to follow a gradual upward trajectory. Adam noted that Powell's reference to gradual hikes was a thing of the past. It's a more dovish perspective of Jerome Powell.

This raises a rather bearish outlook for the USD / JPY pair. The G20 outlook on Friday and Trumps self-pricing point to additional weakness in the USDJPY. I like a USD / JPY short here of a retracement at 100 EMA and 50% Fib level.

Update: Now this price at displaced down further from the screen capture below. I like the 100 and 200 EMA on the 15-minute chart as a place to join this short USD position.

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