Trump and the Justice Department Show No Retreat on Fed Chair Powell's Term End

The news could introduce uncertainty regarding the Fed’s future policy stance. The USD is closely tied to Fed decisions, so a modest decline against the JPY may be anticipated. Technical indicators suggest a gentle upward trend, yet the news impact could temporarily nudge the JPY slightly lower.

A news story indicating that President Trump and the Ministry of Justice did not overlook the conclusion of Fed Chair Jerome Powell’s term could introduce uncertainty into financial markets. This development may lead to a short‑term weakening of the U.S. dollar as expectations of a shift in Fed policy direction grow. Current DXY indicators—RSI at 39, a negative MACD, and SMA20 below SMA50—already signal a modest downtrend. Consequently, the market reaction to the news could result in a slight decline in the DXY over the next one to three days. However, the extent of the market response will depend on the Fed’s official statements and other macroeconomic data.

News that President Trump and the Ministry of Justice have not overlooked the Fed’s impending term conclusion could inject uncertainty into U.S. markets. This development may heighten risk‑off sentiment, supporting yen gains and exerting short‑term downward pressure on the Nikkei 225 (N225). Nevertheless, current technical indicators—RSI at 74, a positive MACD, and the 20‑period simple moving average (SMA20) positioned above the 50‑period SMA (SMA50)—signal a robust upward momentum. Consequently, the market may remain in a state of volatility rather than establishing a clear direction in the near term. Investors are advised to balance their positions in line with their risk tolerance.

The assertion by Trump and the Ministry of Justice that Federal Reserve Chair Jerome Powell did not overlook the conclusion of his term may introduce uncertainty in financial markets. Despite a high Relative Strength Index (RSI) and a positive Moving Average Convergence Divergence (MACD) for the Nasdaq 100 (NDX), the index could face short‑term correction pressure. A modest decline or a sideways move is anticipated over the next one to three days. While technical indicators support a long‑term uptrend, political developments may exert short‑term pressure on the market.