The Institute for Supply Management (ISM) report on Monday showed that US manufacturing sector had expanded in September. The ISM survey about manufacturing activity came up with number of 51.5, higher than August figure at 49.4. The report added optimism on US economy strength following optimistic consumer sentiment report on Friday.

Market’s focus now is at the upcoming US Non-Farm Payrolls data on Friday as further indication about labor market, since the Federal Reserve had given clues that next rate decision would be based on the figure.

Technical Analysis:

USDJPY remains in upward trajectory, testing intraday key resistance at 102.959. If the resistance breaks, USD/JPY possibly will continue its rally up to 103.479-104.064. Note that hourly stochastic and CCI are falling. Therefore, as alternative strategy, you might want to look for bullish signal confirmation on a pull-back move to within 101.850-102.435 with 102.959 as target and 103.479 in extension.

Be careful if the price managed to break support 101.850 because it will turn the intraday bias into bearish and possibly will be followed by bearish move to 101.588-100.264.

Trading Plan:

– Buy on break of 102.959; target at 103.479 or 104.064
– Buy on bullish signal confirmation within 101.850-102.435; target at 102.959 or 103.479


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