Powell said interest rate increases could be cut back “as soon as December.” US yields dropped overnight to a nearly two-month low of 3.6% after Powell. There is a 91% probability that the Fed will reduce its rate increase to 50bps in December. Today’s USD/JPY forecast is bearish. The dollar hovered near a three-month low against the yen on Thursday as traders focused on remarks made by Federal Reserve Chair Jerome Powell that interest rate increases could be cut back “as soon as December.” –Are you interested in learning more about spread betting brokers? Check our detailed guide- The dollar-yen pair is quite responsive to fluctuations in long-term US yields, which dropped overnight to a nearly two-month low of 3.6%. Powell stated at the Brookings Institution in Washington that “slowing down at this time is a good way to balance the risks.” But he continued by saying that “keeping policy at a restrictive level for some time” would be necessary to contain inflation. Markets are currently placing a 91% probability that the Fed will reduce its rate increase to 50 basis points on December 14 and just 9% odds of an additional 75 basis point increase. November was the worst month for USD/JPY in 14 years, as the dollar dropped 7.15% against the yen. Asahi Noguchi, a BOJ board member, stated on Thursday that the central bank must maintain extremely low interest rates because the nation has yet to sustainably hit the bank’s 2% inflation target. USD/JPY key events today Investors will pay attention to data from the US, including the core PCE price index, the initial jobless claims, and the ISM manufacturing PMI. They will also attend a speech from Bank of Japan Governor Kuroda. Get FREE Forex Signals Now! USD/JPY technical forecast: Bears finally break 138.00 Looking at the 4-hour chart, we see the price trading below the 30-SMA and the RSI below 50, showing bears are in control. The price had been trading in a sideways move with support at 138.03. Bears tried to break below this support on several occasions but failed. –Are you interested in learning more about AI trading brokers? Check our detailed guide- When the price finally fell below this level, it was with a lot of momentum. The bears will now be looking to break below support at 136.05. Bulls will also be waiting for a retracement of the recent move. If bulls came in at any point, it would be to retest the 138.03. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Majors share Read Next Gold Price Rallying to $1,800 Post Powell’s Remarks Olimpiu Tuns 2 months Powell said interest rate increases could be cut back "as soon as December." US yields dropped overnight to a nearly two-month low of 3.6% after Powell. There is a 91% probability that the Fed will reduce its rate increase to 50bps in December. Today's USD/JPY forecast is bearish. The dollar hovered near a three-month low against the yen on Thursday as traders focused on remarks made by Federal Reserve Chair Jerome Powell that interest rate increases could be cut back "as soon as December." -Are you interested in learning more about spread betting brokers? Check our detailed guide- The dollar-yen… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.