USDJPY - Long Pre Powell and Data Releases

USDJPY has been in a downtrend since the beginning of July largely due to concerns surrounding the covid Delta variant as the Yen is seen as safe haven. However, the FOMC minutes indicated that it would scale back it's bond purchases later this year which is earlier than expected by the market. This could lead to USDJPY moving higher and consolidating above resistance at 110.1 in particular if Powell gives more indications of FED tapering at the Jackson Hole meeting tomorrow. Additionally, the continued strong performance of stocks would provide added upward momentum for the currency pair as we also await inflation data tomorrow for significant price action.