Forex Daily Analysis: June 17, 2021 - FOMC Effect Weakens Yen

Today's forex daily analysis on June 17, 2021, will discuss the effect of the FOMC on market movements. The effect of this FOMC on the movement of USDJPY can be seen that the Japanese Yen currency has weakened compared to the US Dollar. Apart from the strengthening of the US Dollar which caused the weakening of the Japanese Yen currency, there are other factors that make the Yen weaken. Among them is the physical selling of the Yen carried out by market participants. In today's market movement in the Asian session, it is expected that USDJPY will continue its weakness. As we know after the FOMC meeting this morning, where the chairman of the Central Bank "Jerome Powell" was "hawkish" which caused the US Dollar currency to strengthen. The US Dollar strengthened against several other major currencies. The strengthening of the US Dollar received support after the results of the FOMC meeting today. Powell said in a monetary policy announcement on Thursday morning. The Fed through Jerome Powell has given its views on the outline of the plan to raise the benchmark interest rate in 2023. The plan to raise interest rates is carried out in an effort to offset the surge in the soaring inflation rate. However, the US Central Bank still maintains other policies, including regarding the purchase of bonds worth around US$120 billion per month. This is done so that the economic recovery process and the labor sector that have an impact after the Covid-19 pandemic hit the world. In the early morning meeting, Fed officials 11 out of 18 FOMC meeting members have predicted that the plan to raise interest rates will be at least around 0.25 basis points in 2023. This means that the Fed is likely to plan to raise its interest rate by 2x next year. This statement turned out to be faster than the previous statement, where previously the Fed planned to raise its benchmark interest rate after 2023. The US inflation rate is predicted to move faster than the previous prediction, even the Fed has raised the inflation rate to 3.4%.

Forex Daily Analysis Prediction June 17, 2021

Today's FOREX prediction on the USDJPY pair is expected to weaken/rise and the recommended OP (Open Position) is BUY at the level of 110.850. With a Target Profit (TP) of 10 - 20 points and a Stop loss (SL) of 5 - 10 points. This the daily forex analysis on June 17, 2021 which discusses the effect of the FOMC on market movements, especially for the Japanese Yen currency which has weakened. Keep Money Management and Risk Management first in your trading. Visit GIC Indonesia to get information about the world of trading. You can also join us in the GIC Trade Telegram Community and GIC Trade Telegram Channel. Don't forget to check out the GIC Indonesia Youtube account which is full of a lot of information, and follow our Instagram account to get information about various interesting webinars that you can participate in.