USD/JPY: outlook for August 22-28
The bears kept USD/JPY pinned to the 100.00 area. The pair was supported as some Japanese investors want to buy dollars on moves towards 99.00. Yet, the picture remains negative and it seems only a question of time before the pair slides down. Target is at 98.70. Resistance is located at 101.20, 101.60 and 102.00.
Trading next week will likely be more volatile as global central bankers meet in Jackson Hole amid low summer liquidity. Speech of the Federal Reserve’s Chair Janet Yellen will likely make USD/JPY leave consolidation range. As for Japanese economic calendar, the nation will release inflation data early on Friday.
A representative of Japanese financial authorities said that they were watching for speculative currency market moves and would respond if needed. Analysts think that Japanese interventions will be more likely not at current levels, but lower, around 96-95.00. As for the position of the Bank of Japan, traders don’t expect much from the central bank and this supports the yen.