USDJPY adds 0.15% at 107.27 after the strong U.S. ISM Non-Manufacturing PMI reading. The figure came at 57.3 well above the market forecasts of 54.9 in February and above the January reading of 55.5. The Services PMI came in at 49.4 in line with estimates while the PMI Composite came in at 49.6 as expected in February.
The ISM Non-Manufacturing Employment Index registered in at 55.6 topping the forecasts of 54.1 in February. The ISM Non-Manufacturing New Orders Index came in at 63.1, above the expectations of 56.3. The ISM Non-Manufacturing Prices Paid came in at 50.8 below the expectations of 54.5.
Earlier today the United States ADP Employment Change came in at 183K topping forecasts of 170K in February.
During Asian trading session the Japan Services PMI came in at 46.8 beating the expectations of 46.7 in February. The data supported the Japanese yen during the Asian and European trading session.
Read our Best Trading Ideas for 2020.
USDJPY Technical Outlook
On the technical side, the pair’s outlook is bearish now after the seven days sell-off in the last eight trading days. The USDJPY pair needs to return above the 200-day moving average in order to cancel the recent bearish momentum. Lets see if the robust ISM Non-Manufacturing PMI can help the pair to regain the positive momentum.
On the upside, the first resistance level stands at 107.94 the daily high. Above that the next resistance would be met at 108.20 the high from yesterday’s trading session. The 200-day moving average would provide the next supply zone.
On the flip side, initial support for USDJPY stands at 107.33 today’s low. Extra bids would emerge at 107.13 the low from October 9, 2019. In case of a break below then the next support will be met at 106.81 the low frrrom October 7, 2019.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Nikolas on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.