USD/JPY: looking to test post Yellen/Draghi speech's low, eyes on Aug low below 109.00

Currently, USD/JPY is trading at 109.35, down -0.17% on the day, having posted a daily high at 109.85 and low at 109.11.

The US dollar was pressured in the absence of any direct monetary policy related comments by either Fed Chair Yellen or ECB President Draghi during their Jackson Hole speeches. USD/JPY dropped to test the 109..00/20 support area and made a low where spot is currently testing in the Tokyo open at aforementioned lows. 

But beyond currencies, it was generally a quiet day on Friday's US session, as noted by analysts at ANZ. "Equities were mixed, with the S&P 500 closing up 0.2%, while the DAX and FTSE 100 both finished down 0.1%. US treasures reacted to Jackson Hole comments in a similar fashion to the USD, with the yield on the 10-year note dropping 3bps to 2.17%."

Yellen's speech: three important points - Nomura

JPY saw no material response to the release of as-expected CPI data for July and near-term risk remains centered on the broader tone. For the week ahead, it is a quiet one for Japan but eyes will be on the nonfarm payrolls at the end of the week.

The week ahead: key events for the forthcoming week - Nomura

USD/JPY levels

"The USD/JPY pair trades in a well-defined range near its August low of 108.59, and the daily chart shows that the price is well below its 100 and 200 DMAs," explained Valeria Bednarik, chief analyst at FXStreet.

"Technical indicators remain within negative territory, lacking directional strength, presenting a neutral-to-bearish stance. The 4 hours chart shows that the price retreated from a bearish 100 SMA on Friday, now acting as dynamic resistance around 109.75, while technical indicators aim modestly higher within neutral territory, not enough to confirm an upward extension ahead," Valeria noted.

"Below 108.13 would target the 107.49 July 2016 high, then 106.50, the 61.8% retracement of the move 2016-2017," explained analysts at Commerzbank.