- The Japanese yen is among the best on Thursday.
- The US dollar trims gains during the American session after the ISM.
- USDJPY fails to break away from the 148.00 signal.
USD/JPY trimmed gains during the American session and fell from 148.44 to 147.60. The drop came after the dollar lost momentum following the release of the ISM services index.
US data disappointed expectations
Ahead of the Non-Farm Payrolls report to be released on Friday, the ISM services sector report showed numbers disappointed expectations on all indicators. The general index fell from 56.7 to 54.4, against the market consensus of 55.5. The employment index fell to 49.1, versus 51.6 expected.
The dollar lost momentum after the report and after the first hour of trading on Wall Street, which saw stocks trim losses. US yields pulled back and favored the USD/JPY pullback.
rank prevails
The drop from 148.45 extended to 147.59, where the pair found support and headed towards 148.00. At the time of writing, it is around 147.85, close to where it closed on Wednesday.
USDJPY continues to trade sideways between 147.00 and 149.00. A break above 149.00 should point to more gains, while a consolidation below 147.00 would expose last week’s low near 145.00.
Technical levels
Source: Fx Street
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