Powell Appointed as Acting Chair After Term Expiration

Powell’s appointment as interim president could introduce uncertainty into the Fed’s future policy trajectory and may weaken the USD modestly in the short run. Nevertheless, USD/JPY remains technically bullish, having risen 0.28% over the past 24 hours and trading above both the 20‑period and 50‑period simple moving averages. With an RSI of 63.7, the pair is not in over‑bought territory, reducing the risk of a sharp pullback. The MACD line sits just below its signal line, indicating that short‑term momentum has yet to crystallize. Overall, markets may react to the news with a modest downside expectation, but the technical indicators continue to support a robust upward bias.

Powell's departure could create uncertainty in the market regarding the future direction of Fed policy. Despite the DXY rising 0.4% within 24 hours, its RSI sits at 64.7 and the MACD is slightly below the signal line, indicating modest short‑term selling pressure. The pair remains above the 20‑ and 50‑day moving averages, suggesting that the overall trend is still bullish. In the 1‑ to 3‑day horizon, the likelihood of a short‑term decline is high due to uncertainty, but the probability of the trend continuing should not be overlooked. Consequently, the direction is assessed as “down,” albeit with low conviction.

Powell's appointment as interim chairman following the end of his term underscores the continuity of U.S. monetary policy and could provide a modest lift to the dollar. In the USDTRY pair, this could weaken the Turkish lira and lower the exchange rate. Technical indicators show the price trading just below the 20‑period simple moving average (SMA20) and the MACD in negative territory, signaling slight short‑term downward pressure. With the RSI at 40, the pair is not in an oversold zone, but momentum still points to a decline. Overall, USDTRY is expected to trend slightly lower in the near term.