USD/JPY grinding higher to 109.20 in the Tokyo session

Currently, USD/JPY is trading at 109.03, down -0.01% on the day, having posted a daily high at 109.07 and low at 108.85.

USD/JPY is currently making a meager effort onto the 109 handle in the Tokyo opening hour, creeping higher with some momentum gathered as the open progresses.  

The tone overnight was a mild risk off play on the back of Trump’s latest comments in Phoenix pulling US stocks, bond yields, and the dollar all lower. The US 10yr treasury yields fell from 2.22% to 2.17% while the Fed fund futures yields remained at around 36%. Subsequently, USD/JPY fell from 109.80 to 108.96 as the safe-haven yen took up one of the top slots across the board. 

Meanwhile, all eyes are on the Jackson Hole, just in case there are key takeaways from the event in Yellen's speech, however,  it does not appear to particularly lend itself to a talk of the nuances of monetary policy. Also worth noting is that Japan will release its latest National and Tokyo inflation figures tomorrow. 

Here's Why Dollar is On Back Foot Before Jackson Hole

USD/JPY levels

Support levels are 108.84, 108.45 and 108.10 ( 108.84/13 support zone is made up of April and June lows.) The resistance levels are 109.60, 110.00 and 110.45.  On the wide, the key upside level is 111.05 as the current August high and to the downside, a break below 108.10 would bring in the July 2016 high at 107.49.

From a technical point of view, Valeria Bednarik, chief analyst at FXStreet explained that the risk remains towards the downside while technical indicators retreated to establish around their mid-lines, with no certain strength at the time being, but with the risk still towards the downside.