The greenback has been strengthening for the last few days since US economic data showed some significant improvements. Latest data from the Institute for Supply Management (ISM) on Monday showed that there was expansion in US manufacturing sector in September. The survey about manufacturing activity came up at the number of 51.5, higher than expected and higher than August report at 49.4.
The report added optimism on the world’s biggest economy condition following optimistic consumer sentiment report last Friday.
USDJPY remains in upward trajectory. We can see some correction, approaching the intraday support area at 103.427-103.044. Hourly stochastics is oversold but note that CCI is falling. Today, you might want to wait for bullish signal confirmation on a pull-back move to within the support area before taking long position with 103.663 as target and 103.893 in extension.
Be careful if the price managed to break support 103.044 because it will turn the intraday bias into bearish and possibly will be followed by bearish move to 102.898-102.662.
– Buy on bullish signal confirmation within 103.427-103.044; target at 103.663 or 103.893