USD/JPY: a Tokyo pop to the upside, recovers from below 100 handle

USD/JPY is currently consolidating in the low 100 handle between 100.15 and 100.52 after a break and recovery through and above the 100 handle with lows of 99.54 overnight. 

USD/JPY has been losing ground on a weaker dollar having dropped below the 100.80 support while august highs have now been lost for dust at 102.58 as best are taken off the table for the Fed hike and focus will now switch to the FOMC minutes this week.

For Japan, Valeria Bednarik, chief analyst at FXStreet explained that a Japanese MOF officer, Asakawa, rushed to the wires to inform that financial authorities were closely watching FX markets with a "sense of urgency," a subdued way to "menace" markets with intervention, but as usual, authorities jawboning was not enough.  "The pair was further weighed by stocks, broadly lower across the word." 

How volatile has USD/JPY been?

Hourly 2-Standard Deviation Volatility Bandwidth is currently 61 pips, and has been shrinking, while the ATR (14) is currently 20 pips. Daily 2-Standard Deviation Volatility Bandwidth is at 835 pips and expanding. The average movement for the current hour has been for 20 pips per hour, over the last four weeks. Meanwhile, 3:00-4:00 GMT represents peak for volatility, with an average movement of 47 pips over the same period.

What price levels and patterns have to be considered?

Current price is 100.45, with resistance ahead at 100.50 (Weekly Classic S1), 100.50 (Daily High), 101.16 (Hourly 100 SMA), 101.23 (Daily Classic R1) and 101.30 (Yesterday's High). Next support to the downside can be found at 100.38 (Daily Classic PP), 100.35 (Hourly 20 EMA), 100.31 (Daily Open), 100.31 (Monthly Low) and 100.31 (Weekly Low). Looking at price patterns, we can see a Dark Cloud Cover 1-hour candlestick formation.