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2 Jun 2014
USD/JPY stumbles after ISM manufacturing
FXStreet (Córdoba) - The USD/JPY tripped and fell toward the 102.00 area after the ISM manufacturing index came in well below market’s expectations.
The Institute for Supply Management said its manufacturing index fell to 53.2 in May from 54.9 in April. That fell short of the 55.8 forecast although readings above 50.0 point to expansion in the sector. The USD/JPY backed away from a 2-week high of 102.28 and slid to 102.04 before finding support. At time of writing, the USD/JPY is trading at the 102.10 area, still 0.26% above its opening price.
USD/JPY technical perspective
“In the 4 hours chart indicators also present a strong upward momentum that will prevail as long as buyers surge on dips down to 102.00”, said Valeria Bednarik, chief analyst at FXStreet. “Daily chart shows 100 SMA around 102.35, offering intraday resistance: accelerations above this latter should lead to the 102.70/103.00 price zone”.
USD/JPY levels to watch
In terms of technical levels, if the USD/JPY next resistances could be found at 102.27/28 (May 14 & June 2 highs) and 102.35/37 (May 13 high/100-day SMA). On the other hand, supports are seen at 101.75 (Jun 2 low), 101.42 (May 29 low) and 101.35 (May 22 low).
The Institute for Supply Management said its manufacturing index fell to 53.2 in May from 54.9 in April. That fell short of the 55.8 forecast although readings above 50.0 point to expansion in the sector. The USD/JPY backed away from a 2-week high of 102.28 and slid to 102.04 before finding support. At time of writing, the USD/JPY is trading at the 102.10 area, still 0.26% above its opening price.
USD/JPY technical perspective
“In the 4 hours chart indicators also present a strong upward momentum that will prevail as long as buyers surge on dips down to 102.00”, said Valeria Bednarik, chief analyst at FXStreet. “Daily chart shows 100 SMA around 102.35, offering intraday resistance: accelerations above this latter should lead to the 102.70/103.00 price zone”.
USD/JPY levels to watch
In terms of technical levels, if the USD/JPY next resistances could be found at 102.27/28 (May 14 & June 2 highs) and 102.35/37 (May 13 high/100-day SMA). On the other hand, supports are seen at 101.75 (Jun 2 low), 101.42 (May 29 low) and 101.35 (May 22 low).