Powell: Inflation Pressure Persists, Fed Decision Awaited-Observe

Powell’s emphasis on the continued inflation pressure could support the USD in the short term. Technical indicators are in the oversold region (RSI 33) and the price is below the 20/50 SMA, so a short‑term decline may persist. However, awaiting the interest‑rate decision could create market uncertainty; therefore, volatility is expected until the direction clarifies.

USDJPY is trading at 156.33, down 0.57% over the past 24 hours, showing a weak trend. Although the RSI at 30.35 is approaching oversold territory, the MACD remains below the signal line and in negative territory, suggesting that short-term bearish momentum could persist. The price is trading below both the 20-day (157.53) and 50-day (157.30) moving averages, presenting a technically weak outlook. While Powell's remarks that inflationary pressures persist and a wait-and-see approach will be taken on interest rate decisions could support the dollar, the current technical structure points to further downside potential. In the short term, a pullback toward the 156.00 support level is highly likely, but the pace of the decline may be limited due to oversold conditions.

Powell's emphasis on persistent inflation pressures and a wait-and-see approach to interest rate decisions could create short-term uncertainty in the markets. Technically, the SPX is not approaching overbought territory with an RSI of 63, but the MACD being above its signal line and trading above the 20- and 50-day moving averages supports an upward trend. However, the cautious tone generated by the news may limit the current positive momentum. Therefore, a sideways movement is expected in the short term until the direction becomes clearer.

The NDX is approaching overbought territory with an RSI of 71, increasing the likelihood of a short-term pullback. Powell's comments that inflationary pressures persist and a wait-and-see approach will be taken on interest rate decisions could create uncertainty in the market. Although the MACD still signals upward momentum, there is a possibility of weakening momentum. Technically, the outlook remains positive above the SMA20 and SMA50, but the cautious sentiment generated by the news may limit upside in the near term. Therefore, a sideways movement is expected rather than a clear directional trend.