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5 Mar 2014
USD/JPY pulls back after US ISM non-manufacturing
FXStreet (Córdoba) - The USD/JPY fell the pressure of disappointing US data and pulled back from highs following a weaker-than-expected ISM services PMI reading.
The US non-manufacturing ISM index for February came in at 51.6 versus 54.0 in January and below the expectations of a 53.5 outcome. The ISM employment component miss confirmed weak ADP earlier. The USD/JPY fell to the 102.30 zone from a high of 102.54 scored minutes before data, but the 20-hour SMA offered support. At time of writing, the USD/JPY is trading at 102.35, still 0.1% above its opening price.
USD/JPY technical perspective
"The hourly chart shows price extending beyond its moving averages, with 200 SMA offering short term support around 102.10, and indicators aiming higher in positive territory, suggesting the pair may continue advancing", said Valeria Bednarik, chief analyst at FXStreet. "However, strong selling interest has surged over the last few weeks on approaches to 102.80, and considering key data to be released on the next couple days, seems a bit too much to expect a break higher today".
The US non-manufacturing ISM index for February came in at 51.6 versus 54.0 in January and below the expectations of a 53.5 outcome. The ISM employment component miss confirmed weak ADP earlier. The USD/JPY fell to the 102.30 zone from a high of 102.54 scored minutes before data, but the 20-hour SMA offered support. At time of writing, the USD/JPY is trading at 102.35, still 0.1% above its opening price.
USD/JPY technical perspective
"The hourly chart shows price extending beyond its moving averages, with 200 SMA offering short term support around 102.10, and indicators aiming higher in positive territory, suggesting the pair may continue advancing", said Valeria Bednarik, chief analyst at FXStreet. "However, strong selling interest has surged over the last few weeks on approaches to 102.80, and considering key data to be released on the next couple days, seems a bit too much to expect a break higher today".