USD/JPY unmotivated in the 100.40 area ahead of US data

The greenback remains on the defensive so far today, now dragging USD/JPY to the 100.50/40 band.

USD/JPY focus on US calendar

The pair is extending its sideline theme today as cautiousness is gathering traction amongst traders ahead of tomorrow’s speech by Chief J.Yellen at the Jackson Hole Symposium.

Market participants will closely follow Yellen’s words, looking for any hint regarding the next rate hike by the Federal Reserve, while the probability of higher rates in September has climbed to 21% and just above 41% for the month of December, according to CME Group’s FedWatch tool.

On the Japanese side, a recent poll by Reuters showed around 60% of Japanese economists see the BoJ incurring in extra easing at the September missing, although opinions on the potential policy measures remain well divided.

USD/JPY levels to consider

As of writing the pair is losing 0.04% at 100.40 facing the immediate support at 99.53 (low Aug.16) followed by 99.08 (low Jun.24) and then 96.55 (low Oct.8 2013). On the other hand, a breakout of 101.09 (20-day sma) would open the door to 102.29 (61.8% Fibo of the June-July up move) and finally 102.83 (high Aug.2).