USD/JPY consolidates slightly below 100.50

USD/JPY stabilized around 100.45, after reaching a daily high at 100.59. The pair managed to trade all day above 100.00. On a wider perspective it continues to trade sideways, in a small range as traders await Janet Yellen speech from Jackson Hole, that will start tomorrow.

But before the economic symposium in Wyoming, US economic data will be released on Thursday. Economic reports include jobless claims, durable goods orders and the service PMI.

Volatility remains low and it could rise with Yellen or US data. During the last seven days, USD/JPY has moved in a 130 pips range, and most of the time around the 100.25/45 zone, where is about to end today, for the third day in a row.

Technical outlook

According to Valeria Bednarik, Chief Analyst at FXStreet the 1-hour chart shows that the price extended above its 100 simple moving average (SMA) and briefly beyond a bearish 200-SMA before settling a handful of pips below this last, with technical indicators lacking directional strength.

“In the  4 hours chart, the technical outlook remains neutral, given that the technical indicators continue heading nowhere around their mid-lines, although the risk remains towards the downside,  as the price is below its moving average, and the mentioned Fibonacci level, the 50% retracement of the 2011/2015 Abenomics rally”, said Bednarik.