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USDJPY : Bears Seems to be in Control

USDJPY gained some strength after better than expected Non-Manufacturing data showed that growth picked up last month for U.S. service sector and other non-manufacturing companies. According to the data, non-manufacturing index rose to 55.2% in April which is the highest reading in 6 months from 53.1% in March. Economists were expecting a reading of 54.2%. Among 18 industries tracked by ISM, 14 reported growth last month whereas 4 contracted. USDJPY was declining earlier because of the strengthening in Japanese Yen in response to the continued tensions in Ukraine.

On the 4 hour chart, the pair found support at 101.85 and rose after the release of the report. The pair is currently testing the resistance at 102.12 which was earlier acting as a support for the pair. If the pair breaks this resistance, it might rise up to 102.35. However if it declines, it have to break support at 101.85 to confirm further bearish outlook.