USD/JPY Current price: 106.08
- Speculative interest is in wait-and-see mode ahead of Fed Powell’s speech.
- US to present the second estimate of Q2 GDP and weekly unemployment claims.
- USD/JPY technically neutral, bulls need to take the 106.70 level.
Major pairs continued consolidating throughout the Asian session, as investors wait for the Jackson Hole Symposium and Fed chief Powell´s speech. He is expected to unveil the latest review of the central bank’s monetary policy framework and set the stage for a new one, based around average inflation targeting (AIT). Policymakers are likely to adopt a new approach which balances periods of low inflation with other of higher price pressure. In this scenario, it seems the central bank will keep rates at record lows for long.
A scarce macroeconomic calendar overnight exacerbated range trading, although the greenback is finding some favor as the event approaches. The US will also have a busy macroeconomic calendar, as it will publish the second estimate of Q2 GDP, foreseen at -32.5% from -32.9%, and Initial Jobless Claims for the week ended August 21, seen at 1 million.
USD/JPY short-term technical outlook
The USD/JPY pair is trading just above the 106.00 level, struggling with a congestion of moving averages, which remain directionless. Technical indicators, in the meantime, have bounced from around their midlines, heading modestly higher with limited strength. The pair would need to advance beyond 106.70 to turn actually bullish, and defy the monthly high at 107.04.
Support levels: 105.80 105.50 105.10
Resistance levels: 106.35 106.70 107.05
View Live Chart for the USD/JPY
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