USD/JPY Stalls in Summer Lull Ahead of Powell's Jackson Hole Speech

USD/JPY remains rangebound near 146.50 as traders adopt a cautious stance ahead of Fed Chair Jerome Powell's highly anticipated Jackson Hole symposium speech later this week. The pair has traded in a tight 145.80-147.20 range over the past five sessions, reflecting typical August trading conditions with reduced liquidity and minimal economic catalysts. Market participants are particularly focused on Powell's potential signals regarding the Fed's rate trajectory, especially after recent mixed US economic data has clouded the outlook. Japanese yen positioning remains defensive as the Bank of Japan maintains its ultra-loose monetary policy stance, creating a significant yield differential with US Treasuries. Technical indicators suggest consolidation continues, with immediate resistance at 147.20 and support at 145.80. A dovish tone from Powell could trigger a break below support toward 144.50, while hawkish surprises might propel the pair toward the 148.00 psychological level.