USD/JPY treading water around 100.40 ahead of Yellen
|The lack of a clear direction in the global markets is now relegating USD/JPY to extend its sideline theme around the 100.40 area.
USD/JPY attention to US data, Yellen
Spot remains sidelined at current levels, with the psychological 100.00 handle holding on well despite the absence of relevant catalysts in the FX universe in past sessions.
Later in the NA session , the speech by Chair Yellen will grab all the attention as market participants will look for hints on the timing of the next rate hike by the Federal Reserve. Furthermore, USD will remain in the limelight as Q2 GDP figures and the Reuters/Michigan index are also expected.
Previously in the Japanese docket, inflation figures tracked by the National Core CPI showed consumer prices have contracted 0.5% on a year to July, casting further doubts on the effectiveness of the policies implemented by the BoJ in order to spur domestic inflation.
USD/JPY levels to consider
As of writing the pair is losing 0.10% at 100.43 facing the immediate support at 99.53 (low Aug.16) followed by 99.08 (low Jun.24) and then 96.55 (low Oct.8 2013). On the other hand, a breakout of 101.02 (20-day sma) would open the door to 102.29 (61.8% Fibo of the June-July up move) and finally 102.83 (high Aug.2).
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