The American currency is actively growing against Japanese yen at today's bidding. From the opening of the day, the USD / JPY vapor added 0.45% and continues to be quoted at 105.70. Investors were quite optimistic responded to the speech of the head of the US Federal FRAS Jerome Powell as part of the annual report by the American Congress. In particular, the chairman of the regulator highly appreciated the success of American health care, noting that "the current rate of vaccination gives hope that 2021 will be held without new locked." In his opinion, "the economy is far from the moment when the Fed reaches its employment and inflation purposes." For this reason, the central bank will support the economy, holding interest rates at the level near zero and continuing the purchase of bonds. Powell also noted that "the achievement of significant progress will need a lot of time, probably more than one year," warned that "inflation during the next year can grow due to a potential surge of purchasing demand as the economy restoring." However, the head of the Fed believes that such a problem will become a pleasant change after that quarter of century, during which economic and demographic forces pulled inflation down.
The President of Fedreva also called on Congress as soon as possible to approve the bill to stimulate the economy in the amount of $ 1.9 trillion., Although many analysts criticize him for excessive high costs. Markets fear that such significant infringement of funds in the economy will provoke a wave of a sharp increase in inflation and takeoff of stock indices, which are largely overvalued.
Given the said, the recovery of the dollar against the yen may well continue until the US congressmen agree on a new package of fiscal incentives. Most leader in the US Senate Sumer said on the eve of the next germ package will be adopted until March 14. Up to this point, the growth of the USD / JPY pair will most likely continue. Interesting statistics from Japan will appear only on Friday with the yield of January data on industrial production and retail sales however, it is unlikely to have a significant impact on the dynamics of the yen.
USD / JPY BUYLIMIT 105.50 TP 106.70 SL 105.10
Artem Deev, Head of Analytical Department Amarkets
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