USD/JPY rises to test daily high after US data

USD/JPY broke above 101.50 and rose to test daily highs located at 101.65. The pair was unable so far to break higher and it was trading at 101.52/56, up less than 20 pips from Friday’s closing price.

Greenback gained momentum after the release of the ISM manufacturing index that rose to 51.5 in September, bouncing from 49.4 in August. The index climbed back into the expansion territory after falling last month below 50.0 for the first time since February. The key number during the week will be on Friday, with the US employment report.

Today equity prices were falling in the US, limiting the upside in the USD/JPY. But most crosses in the forex market were moving in modest ranges.  The worst performer was the pound.

USD/JPY technical levels

To the upside, resistance levels could be seen at 101.65(daily high), 101.85/90 (Sep 29 high) and  102.10 (55-day sma). On the flip side, support might be located at 101.40 (20-hour moving average), 101.20 (daily low) and 100.75 (Sep 30 low).