Global macro overview for 29/03/2017:
The speeches from various FED policymakers have hit the news streams of financial markets. In his recent comments regarding the future Federal Reserve interest rates policy, FED Vice-Chair Stanley Fischer said, that two more interest rate hikes in 2017 should be about right. According to Fischer, the overall risks are also more or less balanced towards more or fewer rate hikes while the Dollar hasn't continued to strengthen. The similar hawkish tone was clearly indicated by Kansas City Fed President Esther George as she stated that it will be important to continue the process of gradually raising interest rates in order not to shock the US economy. The Dallas FED president Robert Kaplan remarks were not that much hawkish as he said that FED should be taking steps to raise rates gradually and cautiously. Chairperson Janet Yellen made no references to current economic trends or monetary policy in her speech on Tuesday. In conclusion, the most of the speeches were pretty hawkish in their tone, so the market participants should still be expecting at least two more interest rate hikes this year.
Let's now take a look at the USD/JPY technical picture at the H4 time frame. After the hawkish comments the bulls camp have managed to bounce from the oversold levels, but so far the price did not test the important technical resistance at the level of 11.57. Only a clear break out above this level will open the road towards the next technical resistance at the level of 112. 88. The immediate support is seen at the level of 110.84.
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