USDJPY remain upbeat ahead of Aunty Janet and resistance is keeping it in check
We've had another look up towards the 123.75 level and come up short again by 10 pips. We also can't get a toehold above the 123.55/60 area either
USDJPY H4 chart
We're also sitting in a tight range with support coming in around 123.25/30
Before Yellen we get some price data from US PPI. Based on Yesterday's import and export price data, we should perhaps be looking at the lower end of expectations. The general consensus if for the headline PPI final demand to come in at 0.2% vs 0.5% prior m/m and -0.9% vs -1.1% prior y/y.
We also get Industrial production for June (+0.2% exp vs -0.2% prior) and then it's on to Yellen not forgetting the BOC announcement (make sure you check out Adam's fantastic Bank of Canada preview)
There will be a lot of eyes on Yellen and how she spins the current story of the economy. We've not come far from the last FOMC meeting where we got her direct views so that's probably a good basis of what to expect from her today. She doesn't tend to stray too far from the script but she can be flustered now and again at these hearings
All that's left is to make a market on how many times she says "so". I'll make you a market of 35 bid at 45 offered. Are you buying or selling?