The US Dollar remains under pressure with disappointment stemming from Fed Chairman Janet Yellen speaking at the Jackson Hole Symposium that the central bank has not given any direct reference to the recent policy outlook.
However, with North Korea’s announcement of another missile test at the weekend, the ongoing cautious environment supported the Japanese Yen’s safe harbor view and contributed to the weakness of the parity.
However, the pair managed to keep on top of the 109.00 psychological level, with significant US macroeconomic data this week and dull transaction activity ahead of Friday’s impatiently expected Non-Farm Employment report.
A broad-based risk sentiment may lead to parity movements at the beginning of the new week, while the US data warehouse trade balance and wholesale stock data are not expected to have a significant effect on the data front.
The USD / JPY pair is currently trading at 109.06 with a loss of 0.28%.
Significant technical levels for USD / JPY
Supports of 108.71, 108.13 and 105.50 may create resistance for the 110.95 (December 12 peak) level pair.