USD/JPY: takes out Yen longs in huge opening gap to 100.65 on Kuroda

USD/JPY is being hit in early Asia in thin liquidity with Kuroda's headlines form the weekend giving some life to the FX space in what might otherwise be a very quiet start to the week ahead of the Jackson Hole showdown.

USD/JPY is extending the dollar gains of the close last week after Fed's Williams gave some support to the Fed's mantra of a rate hike being on the cards while over the weekend, the Yen longs took a blow on the back of BOJ's Kuroda saying that negative interest rate policy has not reached its limits. USD/JPY has bounced with an opening gap from 100.10 to 100.65 so far at time of writing while the day ahead holds no data as a catalyst for Asian markets. 

All eyes on Jackson Hole

For the week ahead, the main focus will stay with the US and updated GDP to see how poor the US economy is doing in relation to the Fed's plans for hiking rates while, on the same note, Fed's Janet Yellen and other central bankers will be getting together for the  Jackson Hole Economic Policy Symposium where Yellen will speak and address the conditions of the US economy. 

USD/JPY levels

USD/JPY has been stabilising just ahead of the 99.00 24th July low and is now up to test the foundations for a continuation to the key resistance at 100.82 (previous Fibo) ahead of 102.83 and 2nd August highs. "Rallies will need to regain 103.55 in order to challenge the top of cloud resistance at 105.23," suggested analysts at Commerzbank, adding, "Rallies will find additional resistance at 102.08, the 20 day ma and 103.62, the 55 day ma."