- The market is in standby mode, looking at Jackson Hole.
- Jerome Powell will give a speech, which will be closely watched with great potential.
- The dollar with mixed results in the prior, the yen among the weakest.
The USD/JPY rose during the Asian session at a moderate pace and peaked in Europe at 137.11, the highest level in two days. Then I can’t stand above 137.00 and since hours ago it stabilized around 136.85where he is waiting for words from Federal Reserve Chairman Jerome Powell.
The highest authority of the Fed will speak at the Jackson Hole symposium. The panorama that it will present will be key for the markets, which have been waiting for this event for days. A hard tone, in favor of sharp adjustments, could favor the dollar, and especially harm the yen.
Before that, July’s personal income and spending report, which includes the core price index for personal consumption spending, will be released at 12:30 GMT. The data will be the prelude to Powell’s speech, which he will speak at 14:00 GMT, although his speech may be published a few minutes earlier.
High inflation, far from the target, guarantees more rate hikes by the fed; although the rhythm and the end point are not clear. On the opposite side, the Bank of Japan is expected to continue with the expansionary policy. This divergence has been (and continues to be) driving the USD/JPY pair higher. While in the US, the Consumer Price Index fell to 8.5% in July, it was known on Friday that in Japanstood at 2.9%, exceeding the expected 2.5%.
USD/JPY heads into a key Friday moving sideways around 136.70. Strong support is at 136.30 and a confirmation below would leave the pair vulnerable to further downside. In the opposite direction, at 137.20 the first resistance appears, followed later by 137.70, where the current week’s high is and is the last defense for a test at 138.00.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
