Sasha Singh
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USD/JPY Finds Support After ISM Non-Manufacturing PMI Data Released

The Institute of Supply Management (ISM) released non-manufacturing PMI which showed that the service sector in the U.S. expanded at a faster pace in January than initially forecasted. In January, the ISM Non-Manufacturing Index registered at 54% indicating continued growth in the non-manufacturing sector for the 48th consecutive month.

  • The business activity or the production index increased to 56.3 from 54.3 in December. 
  • The employment index improved, increasing to 56.4 from 55.6 in December. 
  • The new orders index decreased slightly from 50.4 to 50.9. 
  • The price index also increased from 54.7 to 57.1 thus showing that the non-manufacturers are facing cost pressures in January moreso than in December. 

Overall the index improved in January.

An analysis of the 1 hour  USD/JPY chart after the ISM numbers were released indicates that the USD found some support against the JPY once the data was released.  The chart shows a support at the price level of 101.05. A previously downward sloping resistance trend line is now acting as the support trend line for the pair.
The pair might reverse the trend if it breaks the resistance trend line in the downward sloping channel.