USD/JPY holds steady above 109.00

USD/JPY dropped quickly to 109.10 but bounced back to levels near daily highs. The pair is trading at 109.35 in positive territory for the day, trimming part of yesterday’s losses. 
 
The negative tone around the yen eased during the last hours amid a slide in equity prices in Wall Street. The Dow Jones failed to hold to gains and now is down 0.5% while the Nasdaq drops 0.4%. 

Price action in the forex market remains limited with majors moving in ranges without a clear direction as traders wait for main speeches from Jackson Hole. 

Technical outlook 

USD/JPY is moving sideways between two key levels. To the upside, 109.50 is the relevance resistance: a consolidation on top could clear the way to further gains and probably for a test of 110.00. 

The area around 108.80 is now a key short-term support that limited the downwind during the last three weeks. If the yen is able to break it clearly, a slide to 108.10/20 seems probable.