USD/JPY rebounds from 102.00 ahead of ISM

The greenback is seeing some light at the end of the tunnel, with USD/JPY now testing 102.50/55 after finding decent support in the 102.00 neighbourhood.

USD/JPY stronger ahead of ISM

Spot is showing some recovery following last week’s deep pullback to the 102.00/101.90 band after US Q2 GDP figures have missed consensus and the Bank of Japan has come in short of market expectations of further easing.

On the data front, Japanese manufacturing PMI has come in at 49.3 for the month of July, surpassing initial estimates. In the US data space, the ISM Manufacturing will grab all the attention later in the day.

USD/JPY levels to consider

As of writing the pair is gaining 0.53% at 102.57 and a break above 104.20 (20-day sma) would open the door to 105.50 (23.6% Fibo of 99.08-107.48) and finally 107.48 (high Jul.21). On the other hand, the immediate support aligns at 101.94 (low Jul.29) followed by 100.88 (78.6% Fibo of 99.08-107.48) and then 100.02 (low Jul.8).