USD/JPY Moves Off Lows, Still Vulnerable
USD/JPY managed to recover some ground during the New York session, as the dollar benefitted from upbeat US manufacturing data, although the bounce has been limited, leaving the pair near daily lows.
US ISM Manufacturing PMI rose to 51.3 in May from April’s 50.8 reading and beating expectations of 50.4. USD/JPY bounced from a low of 109.04 but the upside was capped by the 109.60 zone. At time of writing, the pair is trading at 109.45 still 1.15% down on the day.
The yen strengthened broadly on Wednesday after Japanese Prime Minister Shinzo Abe surprised markets by announcing that he would delay a planned sales-tax hike by 2½ years.
USD/JPY technical levels
As for technical levels, next supports are seen at 109.04 (Jun 1 low), 108.71 (May 18 low) and then 108.22 (May 12 low). On the other hand, immediate resistances could be found at 109.75 (50-day SMA), 110.08 (10-day SMA) and 110.82 (Jun 1 high).
