USD/JPY: on the bid in early Tokyo, testing 100.50 levels

USD/JPY is moving higher in the Tokyo open with a better bid dollar that is making ground back vs the offers that of the skepticism markets started to take on in respect to the Fed's ambitions.

Meanwhile the Yen has been softer with affairs over at the BoJ and Kuroda keeping expectations alive for further easing.

"He stated that there is a “sufficient chance” for more monetary easing in September with the decision on whether to act to be based on the comprehensive review of the effectiveness of their easing measures implemented to date, " explained analysts at The Bank of Tokyo Mitsubishi, adding, "He also stated that there was room for rates to move deeper into negative territory."

Meanwhile, attention reverts back to the Fed and Yellen speaking at the Jackson hole at the end of the week. While there is unlikely to be any guidance in respect to timing of a rate hike this year, the Jackson Hole meeting is going to be “Designing Resilient Monetary Policy Frameworks for the Future,” and will be of great interest while otherwise, the US GDP will be another major event for USD/JPY.

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USD/JPY levels

With spot trading at 100.17, we can see next resistance ahead at 100.19 (Hourly 20 EMA), 100.21 (Yesterday's Low), 100.25 (Hourly 100 SMA), 100.33 (Weekly High) and 100.33 (Daily Open). Support below can be found at 100.05 (Daily Classic S1), 99.94 (Daily Low), 99.89 (Monthly Low), 99.89 (Weekly Low) and 99.89 (Annual Low).  Looking to candlestick patterns, we can see a Piercing Line formation on the 4-hour chart.