Important events today:

GB: Bank Holiday.

A mixed backdrop is forming for today. On the one hand, US Federal Reserve Chairman Jerome Powell pointed to the need for further aggressive interest rate hikes, which is good for the dollar. Since the Bank of Japan has no plans to raise rates, the different monetary policy of the two central banks leaves traders no choice but to use the declining dollar for buying.

On the other hand, last week we saw a sell-off in equity markets, which is negative for USDJPY, as the currency pair is historically strongly correlated to stock indices. Jerome Powell said at an economic symposium in Jackson Hole that high rates will have a negative impact on people and businesses, but if rates are not raised, the states will face hyperinflation, which is an even greater evil.

Trade Recommendation: Flat 138.30 -139.30.