Powell Set To Speak At Jackson Hole
Shain Vernier • 2 min read
It will be an active Friday on the forex, as FED Chair Jerome Powell takes the stage at the Jackson Hole Symposium. Powell is scheduled to speak at 10:00 AM EST, addressing a broad range of issues facing both the U.S. and global economic outlooks. Conventional wisdom tells us that a sitting FED Chair is typically tight-lipped about monetary policy in non-FED sanctioned events. However, on the heels of Wednesday’s FOMC Minutes release, the markets will be paying extra close attention as Mr. Powell makes his statement to the symposium.
This weekend is also likely to bring a few financial headlines as the G7 is scheduled to meet. Given the atmosphere of uncertainty surrounding Brexit, the U.S./China trade war, and global quantitative easing, some noteworthy items may stem from the meeting. Aside from Friday’s action at Jackson Hole, it will be important to keep an eye on this weekend’s G7.
USD/JPY Quiet As Jackson Hole Symposium Convenes
Safe-havens have taken a break this week. GOLD, the Swiss franc and Japanese yen have experienced modest participation throughout the past four sessions. For the USD/JPY, this means that rates have become compressed beneath a key 38% Fibonacci retracement level.
Here are the levels to watch in the USD/JPY for the rest of the week:
- Resistance(1): 38% Current Wave, 106.69
- Resistance(2): Bollinger MP, 107.03
- Support(1): Daily SMA, 106.14
Overview: The important number to watch in the USD/JPY is 106.69. This market is in the midst of a four-session consolidation pattern; if bids hit the queue above 106.69, then look for a fast break north of 107.00.
Ahead of Friday’s scheduled events at Jackson Hole, Japan’s National CPI (July) figures are due out during the U.S. overnight. The report is expected to lag from June, but still remain relatively strong. Given the confluence of National CPI and Powell’s speech, we may be in for a very different USD/JPY by the weekly close.