USD/JPY remains confined in a trading band around 101.00 mark

The USD/JPY pair remained confined within a 60-pips trading band and is now attempting to build on to its recovery from session low to currently trade back above 101.00 handle, around 101.15-20 band. 

In absence of any fresh impetus in-term of major economic releases from the US, the pair has been struggling for direction and has failed to extract any momentum from today's Japanese releases - disappointing quarterly GDP print and upward revision of industrial production data for June. 

The pair, however, gained some traction despite of disappointing release of the US Empire State Manufacturing Index for August, which fell short of expectations and came-in at -4.2 as compared to 2.1 expected and July's 0.6.

With the Fed monetary policy outlook as the key driver for the greenback, focus now shifts to Wednesday's release of FOMC meeting minutes that would be looked upon for any immediate respite for the US Dollar bulls.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "Technically, the 1 hour chart shows that the price is well below its 100 and 200 SMAs, whilst the technical indicators turned modestly higher within bearish territory, not enough to confirm further gains. In the 4 hours chart, indicators are neutral around their mid-lines, whilst the 100 SMA has extended its decline far above the current level. The risk remains towards the downside, with a break below 110.65 required to trigger stops and see the price extending down to 100.00. Above 101.40 on the other hand, the bearish risk will diminish short term, with the pair then poised to correct higher up to 102.00."

"Support levels: 101.00 100.65 100.20
Resistance levels: 101.40 101.95 102.35"