USD/JPY Inches Back Above 106.50 Level

USD/JPY Inches Back Above 106.50 Level

2 May 2016, 14:00
Roberto Jacobs

USD/JPY Inches Back Above 106.50 Level

After a minor dip back to session low, the USD/JPY pair resumed with its recovery from multi-month lows to currently trade near 106.60.

During the European session, renewed bout of weakness in US Dollar against its major counterparts invited fresh offers for the USD/JPY pair near 106.70 level. The pair, however, managed to claw back from lows to currently trade around 10-pips away from session high.

Later during the US session, traders will confront the release of US ISM manufacturing PMI, which is likely to set the pair's course for rest of the trading day.

Technical levels to watch

From technical perspective, move above day's high of 106.73 seems to assist the pair to move back above 107.00 mark, towards 107.25-30 resistance area.

On the downside, weakness below 106.30 level is likely to seek support at multi-month low level of 106.14, which if broken seems to expose Oct. 2014 lows support near 105.20 area.


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