Thursday, October 1, 2015

USD/JPY stays above 120.00 despite weak US PMI data

FXStreet (Mumbai) - The USD/JPY pair continues to trade above 120.00 handle even though the Chicago PMI in the US fell into contraction territory (below 50.00) in September.

Upbeat stocks and ADP report support USD

The dismal Chicago PMI did little to rattle the investors, who continue to cheer the better-than-expected US ADP report and the rally in the US stocks. Moreover, the production levels under Chicago PMI fell to the lowest since 2009. Still, the pair has managed to sustain above 120.00 levels.

At the moment, the pair is trading around its hourly 200-MA located at 120.09 levels. The focus now shifts to the US ISM manufacturing figure due tomorrow and Friday’s Non-farm payrolls report.

USD/JPY Technical Levels

The immediate support is seen at 120.00, under which the losses could be extended to 119.87 (hourly 50-MA). On the other side, resistance is seen at 120.41 (July 8 low), above which the pair could rise to 120.88 (200-DMA).
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