USD/JPY limited by 100.60

USD/JPY remained steady and it moved all day in a range of less than 40 pips. The yen and the US dollar were mixed in the market, in a quiet session. The pair peaked at 100.61 and it was trading at 100.55, practically flat for the day.

Traders await news from the Jackson Hole Symposium that could impact on the US dollar. “Fed Chief Yellen may stress her hawkish stance, but even so USD/JPY is not likely to rise, given the dearth of strong JPY selling factors. She is not likely to suggest successive rate hikes”, said analysts from The Bank of Tokyo-Mitsubishi UFJ. They see the pair moving between 99.00 and 102.00 during the next week.

Today the pair remained in the range despite US economic data. Last week initial jobless claims and July’s durable goods orders surpassed market's expectations, while the Services PMI by Markit for August disappointed. Tomorrow in the US a new GDP reading from the second quarter will be released.

Technical levels

To the upside, resistance levels might be located at 100.60/65 (Aug 24 & 25 high), 100.90 (Aug 22 high) and 101.15 (Aug 17 high). On the opposite direction, support could be seen at 100.35 (short-term uptrend line from Tuesday’s lows), 100.28 (daily low) and 99.90 (Aug 23 low).