USD/JPY: tight ranges ahead of Jackson Hole - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the USD/JPY pair closed the day barely above its opening level, still trading within a tight range daily basis, as  investors remained side-lined ahead of the Jackson Hole Symposium, and any clue they may get from Yellen over a possible rate hike this year.

Key Quotes:

"Japan will release its latest inflation figures during the upcoming Asian session, generally expected to remain within negative territory, which can trigger some speculation over the possibility of more stimulus coming from the BOJ, although the pair is hardly expected to rally on that."

"The most likely scenario is that the market will wait for Yellen and jump into the pair after that. In the 1 hour chart, the price is above its 100 and 200 SMAs, both around 100.35, while the technical indicators have lost upward strength and turned lower, holding above their mid-lines."

"In the 4 hours chart, the price is below its 100 SMA, but more relevant, below 100.65, a major Fibonacci resistance as the level stands for the 50% retracement of the 2011/2015 rally. In this last time frame, indicators have lost upward strength after gaining some positive ground, overall maintaining the neutral stance seen earlier this week."