FxWirePro: USD/JPY grinds sideways below 21-EMA resistance, Jackson Hole Symposium event in focus for direction

USD/JPY chart - Trading View 

Spot Analysis:

USD/JPY was trading 0.14% higher on the day at 109.77 at around 08:10 GMT

Previous Week's High/ Low: 110.22/ 109.11

Previous Session's High/ Low: 109.88/ 109.41

Fundamental Overview:

USD/JPY traders tread cautiously ahead of the key Jackson Hole Symposium event later this week.

Risk appetite in global markets has started to recover which is supporting the pair higher.

Markets cheer US Food and Drug Administration's full approval to the COVID-19 vaccine developed by Pfizer and BioNTech.

An uptick in the US Treasury bond yields benefitted the USD and aided in a modest lift to the pair.

The recent minutes of July’s FOMC meeting showed a majority of members thought it might be appropriate to begin tapering this year.

The Jackson Hole is an event that could be used by The Fed's chair, Jerome Powell, to announce timings of when this will happen.

Technical Analysis:

- GMMA indicator shows major and minor trend are neutral

- Price action is below daily cloud and upticks remain capped at 21-EMA

- MACD and ADX are flat and do not provide a clear directional bias

- Momentum indicators on the weekly charts are biased lower

Major Support and Resistance Levels:

Support - 109 (trendline support), Resistance - 110.13 (converged 50-DMA and cloud top)

Summary: USD/JPY trades directionless below 21-EMA resistance. Focus on key Jackson Hole Symposium event for direction.