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USD/JPY is celebrating the Japanese National Foundation day in a range

FXStreet (Moscow) - Japan is on holiday today, that’s why USD/JPY is sitting in a very narrow range and does not want to move at all: the pair is nearly glued to the opening level of 102.18 with current intraday range limited by at 102.12 and 102.26.

USD/JPY needs to brace up for a good move

USD/JPY drifted lower yesterday mostly on technical factors, while the drop below the support level of 102.11, enhanced by 1h 50 EMA triggered new selling and pushed the currency pair to 101.98. That was just another failed attempt to go below 102.00. Obviously, both JPY bulls and bears are tired, they refrain from actions and wait for new triggers. And they may get one later today as the market is absolutely fixated on today’s Yellen testimony in Congress. Beware of high volatility ahead of this by far the most important event. Should the new head of the FED sound more dovish than her predecessor, USD/JPY may crash below 102.00 to the initial support level of 101.44, if it is broken, the downside will accelerate to 101.00. The upside is likely to be capped by 102.50.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 102.28, with support below at 101.91, 100.61 and 101.24, with resistance above at 102.58, 102.95, and 103.25. Hourly Moving Averages are mixed, with the 200SMA at 101.94 and the daily 20EMA at 102.68. Hourly RSI is neutral at 45.

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