USD/JPY off-lows, but remains capped by 100.60

Dhwani Mehta FXStreet

Amid persisting risk-off sentiment across the Asian markets, the safe-haven yen continues to remain in demand against its American counterpart, keeping USD/JPY in the red zone.

USD/JPY holds above hourly 200-SMA

The dollar-yen pair continues to trade in a narrow range so far this week, and now moves back and forth in a less than 20-pips slim range amid increased nervousness ahead of the Fed Symposium – Day 2 and Yellen’s speech.

Adding to the lacklustre trading in USD/JPY, the Asian equities remain on the back foot, which offers some support to the Yen bulls, While the yen markets appear to have ignored downbeat Japanese CPI releases. At the time of writing, USD/JPY trades -0.07% lower at 100.46, while the Nikkei 225 drops nearly -1% to 16,400 levels.Meanwhile, markets digest the latest Fed speaks and upbeat US durable goods data, with all eyes set on the US GDP figures ahead of Fed Chair Yellen’s speech scheduled this Friday.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 100.62 (key resistance). A break above the last, the major could test 101 (psychological levels/ 20-DMA). While to the downside, the immediate support is seen at 100 (round figure) and below that at 99.53 (Aug 16 low).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 100.53

50% Bullish
30% Bearish
20% Sideways

Bias Bullish

1 Month

Avg Forecast 101.49

50% Bullish
19% Bearish
31% Sideways

Bias Bullish

1 Quarter

Avg Forecast 104.33

63% Bullish
5% Bearish
32% Sideways

Bias Bullish

GMT	Event	Actual	Consensus	Previous
Thursday, Aug 25
17:00	USD 7-Year Note Auction	1.423%		1.340%
Friday, Aug 26
24h	USD Jackson Hole Symposium
12:30	USD Gross Domestic Product Price Index		2.2%	2.2%
12:30	USD Gross Domestic Product Annualized		1.1%	1.2%
12:30	USD Goods Trade Balance		$-62.3B	$-63.3B

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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