USD/JPY slides to 100.20 after US GDP, focus remains on Yellen speech

Renewed US Dollar selling pressure seems to have emerged after the release of US GDP print, with the USD/JPY pair dropping to hit a fresh session low level of 100.20.

The revised estimate of US GDP for Q2 2016 was in-line with consensus expecting 1.1% annualized growth. Meanwhile, US goods trade deficit fell to $59 billion in July, which was again better-than $62.3 billion expected and a deficit of 63.3 billion recorded in June. 

The readings, however, failed to impress bulls and the pair broke through its narrow trading band held through European session. 

Focus remains on the much-awaited speech by Fed Chair Janet Yellen at Jackson Hole symposium, which would be scrutinized to gauge the possibilities of Fed rate-hike action in 2016 and the timing of such an action, if any. 

Technical levels to watch

On a sustained weakness below 100.20 immediate support the pair seems to immediately head towards 100.00 psychological mark, which if broken is likely to attract fresh selling pressure and drag the pair immediately towards previous week lows support near 99.55 level before eventually dropping to retest Brexit swing lows support near 99.00 round figure mark.

Meanwhile on the upside, 100.65-70 area now seems to have emerged as immediate hurdle, which if cleared should assist the pair to reclaim 101.00 handle and aim towards 101.20-25 resistance. A follow through buying interest above 101.20-25 resistance has the potential to continue boosting the pair further towards its next major resistance near 102.20 level.